Oil, Gas and Refinery Projects update

[ghazi52]

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Attock Refinery scales back operation amid low HSD intake​

Attock Refinery Limited, a subsidiary of Attock Oil Company Limited, on Wednesday, announced that it will curtail its operations on a temporary basis, amid low intake of High-Speed Diesel (HSD) by Oil Marketing Companies (OMCs).

The refinery shared the development in a filing to the Pakistan Stock Exchange (PSX).

“We wish to inform you that HSD upliftment by OMCs from ARL has remained low during the last two months due to multiple reasons including the possible inflow of smuggled product in our supply envelope,” ARL said in a notice.

The development comes as petroleum product sales in Pakistan plunged by 46% in April, clocking in at 1.17 million tons. Volume of HSD declined by 50% YoY, settling at 0.46 million in April 2023. Experts attributed the decline to a higher petroleum prices, economic slowdown, an increase in smuggled petroleum products from Iran.

Meanwhile, the oil refinery informed that at present, HSD stocks in the refinery have reached to a high-level with very little or no ullage in storage tanks.

 

[ghazi52]

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Turkmen gas has been exported to Pakistan via Kandahar.

Chairman of the Chamber of Commerce and Investment Muhammad said that this is the first time Turkmenistan gas is being exported to Pakistan through this route.

50 tanker gas is being supplied in the first phase.....

 

[ghazi52]

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Petroleum sales halve in April as inflation bites​

Petrol sales drop 25pc YoY in April 2023 to 580,000 tonnes.

 

[ghazi52]

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Pakistan to pay for discounted oil bought from Russia with China’s Yuan currency.

The first shipment of 100,000 tons of Ural crude oil will arrive in Karachi by the last week of this month.

After the first shipment is successful, regular deliveries will start, leading to eventual double-figure decreases in local petrol prices throughout the summer.

 

[ghazi52]

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Newly-launched night navigation increases FOTCO’s terminal capacity by 30pc​

• Port Qasim, FOTCO successfully dock first-ever oil vessel at night

Bilal Hussain
May 12, 2023

Fauji Oil Terminal and Distribution Company (FOTCO) in collaboration with Port Qasim Authority (PQA) on Wednesday commenced night navigation of oil vessels at the FOTCO terminal, a move that increases the company’s capacity by 30%.

Oil vessel ‘MT. Ardmore’ carrying motor gasoline berthed at FOTCO by Port Qasim Authority pilots under night navigation protocols. The milestone was achieved through joint studies and pilot simulations, as well as alignment of berthing standard operating procedures (SOPs).

FOTCO termed the development as a major breakthrough in the oil-import handling operations.

“Night navigation enhances FOTCOs’ capacity to handle petroleum vessels by up to 30%, which now translates into 18 vessels in a month,” FOTCO General Manager Adnan Samdani told Business Recorder.

It will help resolve port congestion and save heavy demurrages faced by importers including Oil Marketing Companies (OMCs) during peak season.

“The country’s growing needs of petroleum products coupled with increasing reliance on imports warranted an efficient functioning of port infrastructure across the country,” Samdani added.

With FOTCO and PQA handling over 70% of imported finished petroleum products, efficient operations at the port and terminal are critical for the country’s energy security.

“Further efforts in rationalising berthing plans, vessel performance, and maximising cross country pipeline utilisation through FOTCO will result in ensuring longer-term sustainable, efficient and cost-effective supply of petroleum to the end consumer.”

Samdani said that currently, demand for petroleum products is depressed, but the decision to enhance the capacity is a strategic one, and serves a longer-term view.

“28 years ago, when this terminal and this expensive jetty were built, there were only furnace oil imports of around 3 million tons. The decision was strategic by the Fauji Foundation and now around 10 million tons of all oil products are managed through this terminal,” he added.

Company Secretary and Brigadier Noor Ul Hassan (retd) said FOTCO has had zero incidents of oil spills or any other accidents in its 28-year history.

FOTCO is a joint venture of Fauji Foundation and Infraavest Ltd. of Singapore, owns and operates a marine oil terminal at Port Qasim. Costing $100 million, it was established in 1995 and has since handled over 180 million tons of oil.

The terminal is capable of handling 10 million tons of oil per annum at the existing jetty, whereas, through capacity optimisation initiatives, excess throughput of 2 million tons can be accommodated.

FOTCO has been able to achieve a turn-around time of 24 hours, a record for such operations in Pakistan. It is the only terminal equipped with the most modern Automated Jetty Monitoring System in the country, the company says.

“While the company has aggressive expansion plans in place to expand port handling facilities, it is still prudent to maximise utilisation of existing infrastructure through addressing existing bottlenecks including vessel pumping rates, larger parcel size and optimise planning and SOPs,” said Samdani.

 

[ghazi52]

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Over the past 20 days, Pakistan Customs Enforcement Karachi successfully confiscated smuggled goods, including Iranian petrol, with an estimated value of Rs. 792 million. Collector Customs Enforcement Amir Thahim, during a media briefing held at the Customs House,

 

[ghazi52]

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Govt targets importing one-third of crude oil needs from Russia​

The News
May 26, 2023

State Minister for Petroleum Mussadik Malik said on Thursday that the government targets to import one-third of the country's total crude oil requirements from Russia.

Malik told reporters that the government has finalized a comprehensive energy security agreement with Russia, which would cover different aspects of the energy supply in the country. "We want to open an energy corridor with Central Asia like the one we have with Gulf countries," Malik said. "This would reduce the cost of energy in the country and would be helpful in the development of industrial clusters and value additions in the agriculture sector."

When asked about the discounted price of the imported Russian crude oil, Malik refused to disclose the commercial deal, citing contractual obligations. However, he said that the government believes in practical work and does not indulge in "waving cipher" to hurt the national interests. The minister said that the government's objective is to import 18-20 percent of its total crude oil imports from Russia, with the hope that this move will substantially lower petroleum product prices for domestic consumers.

He said that the deal with Russia has been structured transparently within four to five months and would be helpful in reducing the burden on the masses in the form of reduction in oil prices domestically.

Earlier speaking at the event, Malik said that a comprehensive energy security agreement would be completed by the end of this year, which would cover different aspects of the energy supply in the country.

He said that it would detail from where crude oil, LNG would be taken and how it would be transported in the country and supplied to the consumers. He said that this agreement would cover energy imports from Russia and Central Asian States along with the other countries and regions.

The minister said that the government wanted to bring new investment in Pakistan and take it into the global value chain. He said Pakistan is a responsible country and gateway to Central Asia. "We want to tell the world that Pakistan is the way to actualize the energy and gas potential of Central Asia," he said.

Malik said that the government has also finalized the national refinery policy that would bring $10 billion investment in the refining sector. "Very soon, Prime Minister Shehbaz Sharif will inaugurate a $10 billion investment, the details of which cannot be shared at the moment."

He said Pakistan also desired to complete the gas pipeline project with Iran and would be taken considering the international sanctions on Iran. The government is also enhancing its enforcement on border areas to curb oil smuggling from Iran. "In the coming days the flow of smuggled oil will reduce," he said.

 

[ghazi52]

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First cargo ship carrying Russian oil for Pakistan has reached port of Oman.
The ship is carrying 1 lakh ton Russian crude oil, it is expected to reach Pakistan (Karachi Port) in next 10x days (First week of June)...

 

[ghazi52]

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Pakistan’s petroleum sales plummet 40% year-on-year in May​

Sale of petroleum products in Pakistan clocked in at 1.3 million tons in May 2023, a decline of over 40%.

 

[ghazi52]

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The first oil shipment from Russia arrives in Pakistan with the vessel Pure Point anchored at Karachi port, carrying 45,142 metric tonnes of crude oil.

 

[ghazi52]

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https://twitter.com/x/status/1667962008690479104

 

[Bevvy Rosh]

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https://twitter.com/x/status/1667962008690479104

No details have been provided, and no cmoparison provided to Indian importers!!

 

[farok84]

https://twitter.com/x/status/1667938370494910464

Explaining the reasons behind the belated arrival of Russian cargo at the Oman port, the official said, “The vessel, which was loaded with Ural crude on April 21 at a Russian port, got delayed by 10 days due to technical reasons. It then arrived at Egypt’s Suez Canal on May 17, where it waited in a long queue for 12 days to cross the canal.”

The vessel reached Duqm on June 7 after a two-day journey across the Red Sea.

“The delay in the arrival of the cargo will not increase the transportation cost, as it is already settled with the Russians,” he said. “The PRL will refine the crude oil, blending it with the crude imported from the United Arab Emirates and Saudi Aramco.”

Tanker carrying 50,000 tonnes of discounted Russian crude docks at KPT

ISLAMABAD/LAHORE: In a welcoming development, the much-awaited cargo of 50,000 tons of discounted Russian crude oil docked at the Karachi Port Trust at 3am on Sunday. The vessel reached the...

www.thenews.com.pk

 

[ghazi52]

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Pakistan’s Russian crude shipment paid in Chinese currency: minister​

“We’ve run iterations of various product mixes, and in no scenario will the refining of this crude make a loss,” says Musadik Malik.

 

[ghazi52]

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In addition to Pakistan receiving its first shipment of Russian discounted oil yesterday, Pakistan has also received the first cargo of LPG from Russia today, which arrived into Pakistan from the Torkham land border with Afghanistan, travelling via rail in Russia to Uzbekistan, and then via trucks on to Afghanistan, and then finally reaching Pakistan
The initial cargo is of 10 LPG trucks, which are a part of a total of 110,000 tonnes of LPG bought from Russia by Pakistan in the first phase.