SINGAPORE, March 23: Pakistan State Oil (PSO) has issued its quarterly tender seeking 385,000 tons of high-sulphur fuel oil for April-June delivery, up 17 per cent from its first-quarter requirements, industry sources said on Thursday. The company is seeking 125- or 180-centistoke (cst) parcels, to be divided into seven lots of 55,000-65,000 each, for delivery at Port Qasim (FOTCO Jetty), on a cost-and-freight (C&F) basis.

The tender closes on April 7 and will remain valid till April 10.

The first three cargoes are firm, while the other four are optional. The first two parcels are for delivery on April 18-20 and on April 28-30. The others are for delivery at unspecified dates between April and June.

Traders said the deal is likely to be done at stable premiums as supplies are expected to be heavy in April, spilling over into May.

PSO’s first-quarter import tender, for up to six cargoes totalling 330,000 tons, was awarded to Middle East traders Bakri Trading and FAL Oil. The premiums ranged from $18 to $24.75 a ton to Middle East spot quotes, C&F, for 180-cst parcels and $26.40-$29 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 one million tons, due to increased demand from the power sector.

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