Pakistan refineries expected to export 150,000 metric tons of high sulphur fuel oil in a month
The exports occur as demand from electricity generation units continues to diminish
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan refineries are expected to export around 150,000 metric tons (MT) of high sulphur fuel oil and around 25,000 MT of light sulphur fuel oil in the span of a month as demand from electricity generation units continues to diminish.
Refineries currently hold stocks of 194,000 MT of high sulphur fuel oil with Pak-Arab Refinery holding the highest stock amounting to 95,000 MT, Cnergyico around 56,500 MT, National Refinery 21,500 MT, and Pakistan Refinery 17,660 MT, according to data from S&P Global Insight Commodities.
Meanwhile Attock Refinery has 29,482 MT and Cnergyico nearly 13,220 MT of light sulphur fuel oil, according to the data.
In the same month last year, refineries held stocks of 84,000 MT of high sulphur fuel oil and none of light sulphur fuel oil, the data revealed.
The Pakistan government has been discouraging usage of fuel oil for electricity generation plants for over three years, forcing refineries to export the shipments.
Electricity generation in January dropped to 109 gigawatt hours (Gwh) from 750 Gwh in the same month last year, data from the National Power Regulatory Authority, a state run company which compiles data on production and sets pricing, showed.
In the seven months from July to January of the current fiscal year, electricity generation from fuel oil-fired units fell to 261 Gwh compared with 2,103 Gwh during the same period last year, the data said. The share of electricity generation from fuel oil power plants fell to zero from 3% a year ago.
In seven months of the current fiscal year, overall generation from RLNG, gas, hydel, and coal fell 3% to 74,794 Gwh, the data said.
Refineries exported the highest-ever shipment of high sulphur fuel oil — amounting to 160,126 MT — and 29,331 MT of light sulphur fuel oil in January, surpassing the previous peak of 136,788 MT of high sulphur fuel oil and 47,657 MT of light sulphur fuel oil recorded last May, according to the data of Oil Companies Advisory Council, or OCAC, an authority which compiles data of consumption, imports and exports.
Pakistan refineries started exporting fuel oil from February 2022, commencing regular exports from December 2022 barring a couple of months where no exports were recorded, the OCAC data said.
The country’s refineries during July to January exported high sulphur fuel oil amounting to 809,642 MT as compared with 471,900 MT of the same period a year ago, said data. Light sulphur fuel oil exports amounted to 85,137 MT as compared with 27,579 MT of the same period last year.
Comments
See what people are discussing