PSO_File_670
File photo

SINGAPORE: Pakistan State Oil  has extended the validity of a tender to buy low sulphur fuel oil (LSFO) after receiving only one offer, trade sources said.  The validity for LSFO cargoes has been extended to Nov. 4, the sources said. 

PSO was seeking up to 110,000 of LSFO and 455,000 tonnes of high sulphur fuel oil (HSFO), for delivery over November-January, via a tender that it issued earlier this month.  The tender closed on Oct. 19 and offers were valid until Oct. 26.

The company ended up buying five 65,000-tonne cargoes of HSFO from Mercuria, Swiss Singapore and Bakri, but decided not to award the LSFO cargo as it only received one offer from Gunvor, according to the sources.

Gunvor was heard to place an offer for 55,000 tonnes of LSFO at a premium of $99.00 a tonne to Middle East quotes, on a cost-and-freight (CFR) basis.

PSO skipped the purchase of LSFO in its previous tender in September due to sufficient stocks and as the company prepares to shift to winter-grade LSFO in November.

Fuel oil is mainly used for power generation in Pakistan, and demand typically peaks during the summer and winter when hydropower generation fall due to insufficient rainfall.

More From This Section

Dar takes tax officials to task over target

Chief commissioners were called in to work out means for showing growth in revenue collection to reach the target.

Saudi Arabia warns PIA of halting flights over unpaid dues

Saudi civil aviation authority threatened PIA of stopping all flights in case dues are not cleared by April 17.

Amount of unpaid power bills increases to Rs286bn

Power companies blame poor governance of power sector for the fresh build-up of unpaid bills known as circular debt.

PTA dispels reports of dismal response to 3G, 4G auction

PTA says response was “very encouraging and satisfactory”, and that the auction will go through on April 23.


Comments are closed.
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Poll
From The Newspaper
Tweets