Tag: cargo

  • First-ever discounted Russian crude oil cargo arrives in Karachi

    First-ever discounted Russian crude oil cargo arrives in Karachi

    Under a newly established agreement between Islamabad and Moscow, the inaugural shipment of discounted Russian crude oil arrived in Karachi on Sunday, marking the beginning of enhanced trade relations between the two nations.

    Departing from Russia over a month ago, the oil cargo reached Pakistan via Oman. Officials announced that the unloading process would commence on Monday, with the oil undergoing processing at the Pakistan Refinery Limited (PRL).

    During its lengthy voyage, the 100,000 metric ton oil shipment was divided into two parts in Oman due to the Karachi port’s limited capacity to accommodate larger vessels. Subsequently, two smaller ships, each carrying 50,000 metric tons of oil, embarked on their journey to Karachi.

    Upon the cargo’s arrival, Prime Minister Shehbaz Sharif expressed his enthusiasm on Twitter, describing Sunday as a “transformative day” and affirming the fulfillment of his commitment to the nation.

    He expressed the belief that these developments would contribute incrementally to prosperity, economic growth, energy security, and affordability. The Prime Minister further recognised and commended all those involved in this national endeavor who helped turn the promise of Russian oil imports into reality.

    Sources indicate that this Russian oil shipment will not be subject to the existing domestic oil pricing mechanism in the country. Consequently, the PRL will assume the benefits or losses associated with the Russian oil. Additionally, the sources stated that this shipment serves as a test case to evaluate the quality of the crude oil and the ratio of refined products. A report will be submitted to the federal government to inform future decisions regarding long-term commercial oil agreements.

    Pakistan had secured its order for the initial cargo of Russian crude oil at a discounted rate of up to $18 per barrel. Following the Platts crude oil prices, Islamabad applied a discount ranging from $16 to $18 per barrel, according to insider information.

  • Pakistan places first order for discounted Russian crude oil

    Pakistan places first order for discounted Russian crude oil

    Pakistan has placed its first order for discounted Russian crude oil under a new deal negotiated between Pakistan and Russia, following months of discussions.

    State Minister for Petroleum, Musadik Malik, confirmed that one cargo will dock at Karachi port in May.

    Pakistan will only purchase crude oil, not refined oil, and imports are expected to reach 100,000 barrels per day if the initial transaction goes smoothly. Pakistan’s Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included after a trial run.

    A delegation from Russia arrived in Pakistan earlier this month to discuss the payment mode. During these talks, the Russian side requested that the deal with Moscow be kept secret as they do not want the disclosure to other Russian crude buyer countries.

    Consequently, Pakistan’s top officials decided not to disclose the mode of payment and the exact discount. Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March.

  • Pakistan has enough petrol for 20 days: Musadik Malik refutes fuel shortage rumours

    Pakistan has enough petrol for 20 days: Musadik Malik refutes fuel shortage rumours

    On Tuesday, many petrol stations in the cities of Punjab were closed, causing inconvenience for commuters searching for fuel. However, State Minister for Petroleum, Musadik Malik, refuted reports of a nationwide fuel shortage.

    Despite a recent increase of Rs35 per litre in petrol and diesel prices, consumers are still facing difficulties due to limited supply.

    This situation mirrors a similar occurrence earlier this month prior to the price hike. On January 29, the government raised the prices of petrol and diesel by Rs35 per litre in response to the significant devaluation of the rupee against the dollar.

    The devaluation of the local currency against the dollar reached historic lows after the unofficial cap on the greenback was removed. Consumers in cities such as Faisalabad, Gujranwala, Sargodha, Shakargarh, Khushab, Mandi Bahauddin, and Gojra have encountered difficulties obtaining fuel. Petrol stations that remained operational have experienced long lines of vehicles, with reports of owners rationing the commodity by only providing limited amounts to customers.

    According to Geo, the State Minister for Petroleum has issued a warning against hoarding, as the fuel supply is already precarious. The minister stated that hoarders should be prepared for the possibility of having their licenses revoked.

    He said that there is a 20-day supply of petrol and a 25-day supply of diesel in the country. He urged the public to report any petrol stations that may be restricting supply for profit.

    Malik emphasized that there is no shortage of petrol in the country and confirmed that there will be no increase in the prices of petroleum products before February 15.

  • Pakistan to get 20,000 tonnes of additional gas from Azerbaijan

    Pakistan to get 20,000 tonnes of additional gas from Azerbaijan

    In order to meet domestic demand, Pakistan will import an additional 20,000 tonnes of gas from Azerbaijan in the next two months, according to Minister of State for Petroleum Musadik Malik.

    The Russian Petroleum Minister will visit Pakistan next month to strike a deal for the purchase of Russian crude oil, the minister said in a statement. The state minister was confident that Russia will deliver discounted crude oil to Pakistan.

    According to him, the government is working on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project to import 1,300 billion MF of gas from Azerbaijan per year to address the country’s gas shortfall.

    Malik had before claimed that Russia will give Pakistan a discount on the purchase of its crude oil.

    Musadiq Malik stated during a news briefing in Islamabad on Friday that Russian authorities had made it clear they will offer Pakistan cheap crude oil.

    The State for Petroleum Musadik Malik stated, “We are taking talks [with Russia on crude oil] forward,” noting that two of Russia’s eight sorts of crude oil might be utilised in Pakistani refineries.

    He continued by saying that Pakistan was also developing a framework for an LNG cargo arrangement with Azerbaijan.

  • OGRA announces 13% reduction in RLNG price

    OGRA announces 13% reduction in RLNG price

    The Oil and Gas Regulatory Authority (Ogra) has announced a 13 per cent decrease in the cost of re-gasified liquefied natural gas (RLNG) for this month, as the international spot market remained out of reach for Pakistan and the average cost of cargos under a long-term contract fell slightly as oil prices fell.

    According to Brecorder, the basket RLNG price was also lower owing to the second LNG contract with Qatar, which is available to Pakistan at 10.2 per cent of Brent, included four cargos instead of the usual two. The number of LNG cargos from Qatar under the first contract was four for the period, rather than the usual six, at a rate of 13.37 per cent of Brent.

    The average basket price for LNG supply at the import stage (delivered ex-ship), according to a notification from Ogra on Monday, was calculated to be $11.56 per million British thermal unit (mmBtu) for Pakistan State Oil (PSO) for eight cargos (all from Qatar) and $11.856 per mmBtu for Pakistan LNG Limited (PLL) for one cargo under another long-term contract with an LNG trader at 12.14 per cent of Brent.

    As a result, the price of imported RLNG for two gas firms, SSGCL and SNGPL, decreased by roughly $2.2 to $2.3 per mmBtu, or about 13 per cent. SNGPL’s sale price was announced as $14.78 per mmBtu and SSGCL’s as $15.19 per mmBtu. In addition, the price per mmBtu at transmission stage fell by 15–16 per cent in July, from $19.07 to $18.8 per unit in June, to $16.

  • Pakistan’s exports grew 25% in the last nine months

    Pakistan’s exports increased by 17.3 per cent in March 2021 to $2.773 billion, up from $2.365 billion in March 2021 and 25 per cent in the last nine months.

    The Prime Minister’s Adviser on Commerce and Investment, Abdul Razak Dawood, said that exports increased by 25 per cent to $23.332 billion in the July-March fiscal year 2021-2022, compared to $18.688 billion in the same period last year, implying a $4.644 billion upsurge.

    On the other hand, according to preliminary data from the Pakistan Bureau of Statistics (PBS), exports fell 2 per cent on a month-on-month (MoM) basis to $2.77 billion in March 2022, down from $2.82 billion in February 2022.

    Dawood said in a tweet, “We are glad to share that Pakistan’s exports for Mar-2022 grew by 17.3 per cent to $2.773 billion as compared to $2.365 billion Mar-2021. For Jul-Mar 2022, our exports grew by 25 per cent to $23.332 billion as compared to $18.688 billion in Jul-Mar 2021. This is an increase $4.644 billion”.

    While talking about the target for exports he added that “We expect to achieve our yearly target. The import figures would be shared when finalised by the PBS. We would like to congratulate our exporters for maintaining the momentum of exports under these testing times in the global market”.

    Pakistan’s current account deficit (CAD) decreased by 78.46 per cent to $545 million in February from $2.531 billion in January, owing primarily to a steep drop in imports.

    Read more: FBR records 29.1% growth during July 2021 to March 2022, despite providing ‘massive tax relief’

    Surprisingly, the CAD crossed the $12 billion level in the first eight months of FY22, showing no signs of improvement in the external account. The CAD was only $34 million in February 2021.