June 04, 2008	Wednesday	Jamadi-ul-Awwal 29, 1429

SINGAPORE, June 3: The Pakistan State Oil has awarded an import tender for 500,000 tons of low-sulphur fuel oil for supply between June to September to Middle East trader Fal Oil, industry sources said on Tuesday.

The PSO will purchase 10 cargoes of 50,000 tons over the next four months, as it turns to burn oil at its utilities due to a severe domestic shortage. The strike price of the buy tender was not immediately known.

The cargoes for delivery will be of 170-centistoke (cst), 0.95 sulphur and 0.92-0.96 density for delivery into Karachi, with the first scheduled to be shipped by June 14-16.

In an April to June tender, PSO purchased 300,000 tons of fuel oil from Middle East traders Bakri and Fal Oil at premiums of $69 to $90 a ton, to Middle East spot quotes, on a cost-and-freight (C&F) basis.

Because of the acute shortage power, PSO is expected to issue another buy tender later this month for 325,000 tons of high sulphur fuel oil of 3.5 per cent, for supply from July through October.—Reuters