May 5, 2006	Friday	Rabi-us-Sani 6, 1427

SINGAPORE, May 4: Middle East trader Bakri Trading has made the best offers into Pakistan State Oil’s (PSO) tender to import up to 585,000 tons of high-sulphur fuel oil for May-July delivery, industry sources said on Thursday.

Offers for the nine 180-centistoke (cst) cargoes, of 55,000-65,000 tons each, were lower at premiums of $13.25-$15.50 a ton to Middle East spot 180-cst quotes for delivery to Port Qasim, on a cost-and-freight (C&F) basis.

Offers for the higher-grade 125-cst cargoes were also lower at premiums of $17.75-$20.00 a ton on the same basis.

PSO had sought five firm cargoes and three optional parcels of either 125-cst or 180-cst grade.

The firm cargoes, for deliveries on May 9-11, May 14-16, May 28-30 and May-July, were offered at premiums of $13.25-$14.85 a tonne for 180-cst and $17.75-$19.35 a ton for 125-cst.

The optional cargoes were offered at premiums of $14.85-$15.50 a ton for 180-cst and $19.35-$20.00 a ton for 125-cst.

The company last bought up to seven cargoes totalling 385,000 tons from United Arab Emirates’ trader FAL Oil. The premiums ranged from $16.50 to $18.50 a ton to Middle East spot quotes, C&F, for 180-cst parcels and $19.25-$21.25 for the higher-grade 125-cst lots.

Pakistan is expected to buy 25 per cent more fuel oil for the current financial year that ends in July, or an increase of up to 1 million tons, due to increased demand from the power sector.

Power demand last year was at 15,000-16,000 megawatts, up 858mw from 2004. The country’s total power-generation capacity stands at 20,000mw, of which 39 per cent is generated by fuel oil.—Reuters