Fuel oil sales in Pakistan have already hit a three-year high of 240,000 mt in December 2020 on growing demand from the power sector, said Shahrukh Saleem, investment analyst at AKD Securities, adding that furnace oil sales in the current financial year are expected to post an increase after three consecutive years of declines on the back of a gas supply crisis and high LNG prices. Oil prices rose on Wednesday after hitting their highest in about a year in the previous session, boosted by an unexpected draw in US crude and … Pakistan’s economy, which has been reeling from a consistent slowdown, has an opportunity to improve. Access latest metal news and analysis, conferences and events. Crude Oil Production in Pakistan averaged 69.08 BBL/D/1K from 1994 until 2020, reaching an all time high of 97 BBL/D/1K in December of 2016 and a record low of 50 BBL/D/1K in April of 1999. 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A sharp squeeze in domestic gas availability and the surge in LNG prices that has pushed up the cost of gas-based power generation have prompted Pakistan to turn to oil for power, a trend that could result in robust fuel oil consumption in coming months, analysts told S&P Global Platts. Hit by a severe economic crisis, Pakistan had borrowed a $6.2 billion loan from Saudi Arabia in 2018. Singapore — An agreement between Pakistan and Saudi Arabia for provision of $3.2 billion worth of oil on deferred payments per annum has expired two months ago and decision about its renewal remains pending with Riyadh, according to leading Pak daily The Express Tribune. UP offeres the best coverage on Oil and other important topics. According to Pakistan news daily Express Tribune, the deal expired in May and efforts are being made by the country's finance division to renew it. It’s free and easy to do. Market sentiment was also bolstered by news that Democrats in the US Congress took the first steps toward advancing President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support. The remaining tenders were cancelled, with no further announcement on the future procurement plan. Access latest shipping news and analysis, conferences and events. Karachi — Pakistan's oil consumption declined by as much as 11% in the fiscal year 2019-20 (July-June) as COVID-19 kept people indoors while industrial activity slowed to a trickle for a substantial part of the year, but analysts are hopeful that demand will bounce back in fiscal 2020-21. if the 5th attempt fails, the account will be locked for 30 minutes, Please use only English characters (A-Z, a-z), You already have an account, Please log in or reset password. The OGDC […] Pakistan has had great success in exploring for oil and gas KARACHI: Oil and Gas Development Company (OGDCL) has discovered new oil and gas reserves in Hyderabad district of Sindh, which will yield 1.14 MMCFD gas per day. But prices have come off sharply since then, and on Jan. 19 stood at $8.666/MMBtu. Access latest coal news and analysis, conferences and events. US West Texas Intermediate (WTI) crude futures climbed 39 cents, or 0.71%, to $55.15 a barrel at 0744 GMT, for a third straight day of gains. By submitting this form you acknowledge that you have read and you agree to our, You must select at least one interest to continue, You are a premium subscriber, we are unable to send you a link to reset password for security reasons., Commodity Prices and Essential Market Data. The first blessing will be a major cut in the oil import bill. "As of now furnace oil sales are growing due to demand from the power generation side, both from the grid and the industry sector," Talreja added. If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Meanwhile, the new price of kerosene oil is Rs 73.65 per litre and light diesel oil will be available for Rs 71.81, Geo News reported An email confirming your password has been sent. Shankar Talreja, deputy head of research at Karachi-based brokerage house Topline Securities, said the cost of power generation based on fuel oil was currently around Pakistan Rupees 12-13/kWh, while the cost per kwh of power based on RLNG has surpassed Rupees 15/kWh, making it unviable for the government to stick to power generation based solely on gas. The country's struggle to source spot LNG cargoes from overseas at a time when global LNG prices have surged many-fold on the back of cold weather, as well as the inability to supply gas from domestic sources, have left the country with little option other than turning to oil. Pakistan finds answer in oil as gas shortage hits power sector, Cold spell drives oil resurgence in Asia's power sector, CHINA DATA: Independent refineries' Jan crude imports jump 35% from Dec to 18.16 mil mt, Commodity Tracker: 5 charts to watch this week, Fuel oil demand could rise by up to 20% in year ending June 2021, Markets keeping close eye on fuel oil procurement from February, Government assures uninterrupted supply despite shortages. Latest News Headlines All Topics Videos Podcasts Special Reports Insight Magazine Insight Blog Top 250 Rankings Latest in Market Insights Oil LNG Natural Gas Electric Power Coal NGL & Petrochemicals Metals Agriculture Energy Transition Pakistan hikes petrol price by Rs 2.31 per litre. In a delivery period spanning end-October to end-January, state-owned Pakistan State Oil issued nine separate buy tenders seeking a maximum of 15 high sulfur fuel oil cargoes and eight cargoes of 0.5% fuel oil, ultimately purchasing two 50,000 mt cargoes of 0.5% fuel oil, one for delivery at Port Qasim over Nov. 23-Dec. 3 supplied by Trafigura, and the second delivered over Dec. 15-31 by Vitol. Thursday, February 04, 2021. It added that if oil prices drop to $20 per barrel, Pakistan’s oil import bill would decrease by $ 38-4.2 billion. The drilling for oil discovery is reported to have been temporarily suspended due to possible technical fault in the drilling rods. Saudi Arabia has halted the provision of oil on loan for Pakistan after the Imran Khan government threatened to split the Organization of Islamic Countries (OIC) over Kashmir. Textile exports comprise over 60% of the country's overall exports and has witnessed strong growth in recent months. Pakistan's hope of finding massive oil and gas reserves dashed as exploration mission off the coast of Karachi was abandoned after the drill hit the dry 'wells'. Our news analysis covers Fossil fuels, alternative energy and environmental developments. The process spudded the Kekra-1 well to the depth of 5,470 m at a cost of Rs14 billion. If you have any questions or concerns please contact support@platts.com or click here, Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center. The leading global oil, gas and energy news resource. Latest News Islamabad: Pakistan has discovered new deposits of oil and gas in the Kohat district of Khyber-Pakhtunkhwa province. Covering the latest oil and gas news including shale, lng, drilling, exploration and production. "Fuel oil imports are set to surge as the cost of RLNG has been relatively higher compared with fuel oil," said Tahir Abbas, director for research at Arif Habib Ltd., a Karachi-based brokerage firm, adding that fuel oil consumption is set to accelerate in January and February 2021. Syed Javed Ali Hamadani, managing director of Sui Northern Gas, met a delegation from the All Pakistan Textile Mills Association this week and assured them of uninterrupted gas supply to textile units to maintain exports. ISLAMABAD, Pakistan — The authorities are trying to determine the cause of 14 deaths in the southern port city of Karachi, with officials giving conflicting explanations.. New and Discontinued Price Symbol Alerts are issued when we launch new assessments and announce discontinued assessments. Pakistan was hopeful of finding large oil and gas reserves in its territorial waters in the Arabian Sea. Grid-connected oil-fired power plant capacity in Pakistan is about 8 GW. Fuel oil sales in Pakistan have already hit a three-year high of 240,000 mt in December 2020 on growing demand from the power sector, said Shahrukh Saleem, investment analyst at AKD Securities, adding that furnace oil sales in the current financial year are expected to post an increase after three consecutive years of declines on the back of a gas supply crisis and high LNG prices. Access latest gas news and analysis, conferences and events. Brent crude futures rose 47 cents, or 0.82%, to $57.93 a barrel, for a fourth day of gains after hitting $58.05 on Tuesday, the highest since January last year. Contact Us Skip to content. Latest News Most Read Most Shared Most Commented. KARACHI (Dunya News) – Offshore drilling, through a joint venture of four oil giants, near Karachi coast on Indus G-Block (Kekra-1) has been completed after four months of hard work. Petrol will now be available for Rs 106 per litre while diesel will be sold for Rs 110.24 per litre. Pakistan State Oil and Power China International Group will install a crude pipeline of 250,000 to 300,000 BPD. The fourth quarter and January tenders were notable for the increase in quantities of fuel oil sought by a company that since 2019 has switched to LNG. "We have received directives from the ministry and we are liaising with our customers on their procurement needs, but as yet, there's nothing we can comment on regarding February procurement and beyond," a company source said. Pakistani Prime Minister Imran Khan was quoted by local media outlet Dawn as saying that "there's a strong possibility that we may discover a very big (oil) reserve in our waters". Since March, Pakistan’s Prime Minister Imran Khan has been focused on oil and gas. Receive daily email alerts, subscriber notes & personalize your experience. If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password. The drilling work will be resumed after the fault is removed. You can find all important news stories, headlines, news photos and videos about Oil. Investor Information Subscriber Notes inform you of upcoming changes related to the markets that we report on, as well as requests for comment on new assessments, and announcements that assessments will be discontinued. Speaking at the PTI's 23rd foundation day ceremony, the prime minister talked about the alleged corruption of the PPP and PML-N which he said has brought the country's economy to its current state. The results of this exploration encouraged the company to move ahead in the same area for more reserves and a specific area has been pointed out for drilling. Currently, ExxonMobil, ENI, Oil and Gas Development Company, and Pakistan Petroleum Limited are conducting the drill stem test (DST) to determine the real size of the oil and gas reserves in the Kekra-1 well, located around 280 km away from Karachi. Access latest agriculture news and analysis, conferences and events. Pakistan’s new pipeline with Russia to increase LNG import capacity World Oil 12:07 4-Jan-21 Pakistan's 1,100-km gas pipeline to start construction Gulf News 04:43 4-Jan-21 Ali J Hamdani appointed as SNGPL MD The Nation 02:12 2-Jan-21 Please contact the Client Services team. Pakistan LNG said in a Jan. 16 statement that petroleum supplier Emirates National Oil Co., or ENOC, Singapore had defaulted on an LNG cargo for end-February delivery to Pakistan LNG due to supply constraints, and the remaining bidders in the tender were unable to fill in for the delivery window at their original bid prices. Access latest power news and analysis, conferences and events. He added that Pakistan has unused oil-fired power plant capacity, especially now during winter, when power demand is lower than in summer. Stay up to date with the best and authentic source of News online. The benchmark hit a one-year high of $55.26 on Tuesday. Your registration is complete and your account is active. ISLAMABAD: Prime Minister Imran Khan has once again raised hopes that Pakistan can hit major oil and gas reserves in offshore drilling. "While we do not believe Pakistan will fully utilize the existing oil capacity, we assume some switching will take place over the next couple of months. Access latest oil news and analysis, conferences and events. Subscriber Notes can be received by Commodity Region, and Note Type. The discovery was reported by state-owned firm, Pakistan … The Oil and Gas Regulatory Authority (Ogra) has allowed a … Company’s Financials The Holiday Schedule Alert is sent on Friday and provides information on the world's regional and national holidays impacting the publishing of our assessments, market reports and news wires over the week ahead. The default underscores the LNG cargo shortages that have pressured Asian LNG markets in recent weeks and contributed to the S&P Global Platts JKM, the benchmark for North Asian spot LNG cargoes, hitting an all-time high of $32.50/MMBtu on Jan. 13. “A swing in sentiment back to US stimulus and the global recovery, continued cold weather in the US and Northern Asia, plus a massive fall in US API Crude Inventories … saw oil prices explode higher,” Jeffrey Halley, senior market analyst at OANDA wrote in a note. This page provides - Pakistan Crude Oil Production - actual values, historical data, forecast, chart, statistics, economic calendar and news. Pakistan found signs of success in the ongoing oil and gas drilling in the deep sea. Oil prices rose on Wednesday after hitting their highest in about a year in the previous session, boosted by an unexpected draw in US crude and gasoline stocks, fuelling demand recovery hopes as OPEC+ forecasts the market will be in deficit in 2021. He said the volatile global oil prices and depreciating domestic currency impacted functioning of the oil marketing companies. Latest world news from the energy sector. Fuel oil sales in Pakistan surged 38% year on year to 1.62 million mt in the second half of 2020, Oil Companies Advisory Council data showed. Pakistan has not received any oil from the Arab nation since May as the $3.2-billion deal for fuel on deferred payments expired two months ago. Monday, February 1, 2021. Home Editor’s Picks, Contact Enter your Email ID below and we will send you a link to reset your password. G News Network keeps you updated round the clock, 24 hours of the day with breaking news from Pakistan and around the world. Access latest petrochemicals news and analysis, conferences and events. PSO, which procures both high sulfur and low sulfur fuel oil for domestic utility companies, has not yet decided on the procurement of additional cargoes ahead of the start of the summer season. Media reports said it might take a few days to fix the technical fault. Your right to know To continue reading you must login or register with us. Imran Khan hopeful of huge oil, gas reserve in Pakistan waters. Oil and Gas Development Company Limited (OGDCL) has reported gas and condensate discovery from its exploratory well Sial-1, which is located in Hyderabad district, Sindh. Lead Stories Please use the button below and we will bring you back here when complete. Analysts said the country's fuel oil consumption could rise by as much as 20% by the end of the current 2020-21 fiscal year to June 30 as the gas supply situation was expected to tighter further, while the industrial sector's demand for power is rising amid a rush to meet international orders. Pakistan has problems sourcing spot LNG cargoes -- hence higher usage of oil units could be expected on the back of lower gas availability," said Andre Lambine, senior power analyst at S&P Global Platts. The Petroleum Division has granted Kirthar Pakistan BV — a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec) — the license for exploration of oil … [Yes] I would like to receive S&P Global Platts promotional emails. Latest Oil News, Read 2021 Breaking news updates about Oil. The situation has worsened because Pakistan’s oil marketing companies were slow in importing crude oil, said a second person. An ExxonMobil-led consortium is in the final stages of an offshore drilling project in … Energy Updates brings to you all the latest News and Updates related to Power, Solar Energy, Nuclear Energy & Renewable Energy Resources in Pakistan. Pakistan may soon hit the oil jackpot, and that will be good news for not only the country itself but all of South Asia as well as China and the Gulf nations. Platts Commodities Bulletin is a daily regional round-up of the top, most recent news, in-depth features, information on our events, and a summary of what's new on platts.com.