Refineries’ furnace oil sale to rise due to higher LNG prices

Aftab Ahmed

The sale of furnace oil is likely to gain momentum following a record increase in prices of LNG across the world.

Pakistan has two LNG terminals and imports LNG from Qatar and some other suppliers including spot purchases.

During the last several months, Pakistan had also received LNG cargoes at record higher prices due to the rising demand for LNG in the world.

Now, refineries hope that the demand for furnace oil is likely to remain high in oil-fired power plants in Pakistan due to the high prices of LNG.

The management of Attock Refinery Limited (ARL) held its annual general meeting.

During a meeting, management informed that government may divert gas from power plants to domestic sectors. Therefore, demand for furnace oil will jump up in power plants in the winter season.

It said that coal prices were also high along with LNG prices. Therefore, demand for furnace oil would rise in power plants.

Earlier, the sale of furnace oil by local refineries had dropped by 33 percent during the month of July 2021.

The sale of local oil refineries furnace oil stood at 260,000 metric tons. This has dropped to 174907 metric tons. However, the overall sale of furnace oil has increased.

The furnace oil sale increased by 18% to 367,000 metric tons in July compared to 310,000 tons in June this year.

However, its sale had jumped by 85 percent in June 2021 from May 2021 levels.

It is worth mentioning to note that refineries furnace oil inventory in Pakistan increased to 26,669 tons in July against 21,000 tons in June 2021.

Furnace oil price up by Rs 17000 per ton

Total Parco was carrying 12205 tons in July. Attock refinery was holding the largest stock of 10260 tons.

NRL was maintaining an inventory of 1770 metric tons of furnace oil, PRL 2107 metric tons and Byco 327 metric tons.

Demand for black oil had significantly increased due to higher demand in power plants due to the peak summer season.

Total Parco has produced 83473 tons in July against 76,765 tons of furnace in June this year.

It has sold 74895 tons of furnace oil against 79,881 tons during June 2021.

Total Parco furnace oil inventory stood at 12205 metric tons that were 5,010 tons in June 2021.

PSO has sold 225070 tons of furnace oil in July against 176,000 tons of furnace oil in June 2021.

APL has sold only 39463 tons against 42,000 tons of furnace oil in June 2021.

Refineries production of MS dropped to 204,456 tons in July against 221,962 tons in June 2021.

The production of High-Speed Diesel (HSD) also dropped to 375001 tons against 439,977 tons in June 2021.

Total Parco has produced 100,130 tons petrol July. It has sold 98580 tons of petrol.

PSO, SHELL’ oil sales continue to Rise in July

NRL production of petrol has increased to 17340 tons against 12,900 tons of MS in June.

However, its production of high-speed diesel dropped to 56520 tons against 68,400 tons in June this year.

It has sold 16205 tons of petrol against 12,192 tons in June. NRL sold 57240 metric tons against 73,960 tons of HSD.

It produced 33900 metric tons of furnace oil and its sale was 34813 metric tons. The refinery had sold 37947 metric tons of furnace oil in June.

PRL

PRL’s furnace oil production has also dropped to 20615 tons of furnace oil against 28,738 tons in June.

Its sale also declined to 22961 against 28,589 tons of furnace oil in June 2021.

PRL’s production of petrol increased to 21709 tons in July against 20,962 tons of MS in June. The refinery produced 53308 tons against 54,165 tons of HSD.

It has sold 22961 tons of petrol against 22,997 tons in July. However, its sale of high-speed diesel jumped up to 68361 tons against 46, 8169 tons in June.

Attock refinery’s furnace oil sale dropped to 28589 tons against 46,599 tons of furnace oil sales in June 2021.

ARL’s production of petrol also hiked to 51484 metric tons against 43,756 tons in June. Its production of high-speed diesel also increased to 49378 metric tons against and 47,979 tons of HSD in June.