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.