PSO urged to stop importing furnace oil
MUSHTAQ GHUMMAN
ISLAMABAD: The Ministry of Energy (Power Division) has asked Pakistan State Oil (PSO) to stop further import of furnace oil for Guddu Power Station and Jamshoro Thermal Power Station as sufficient stocks of furnace oil and gas are available to run the plants, well informed sources told Business Recorder.
The initial required quantity of furnace oil for both power plants was 18000 MTs per day had been reduced to about 10,000 MTs per day. However, presently the requirement of Guddu and Jamshoro has been calculated at 6000 MTs and 2000 MTs totalling 8,000 MTs which is 55.5 percent less than the initial requirement.
However, now the Ministry of Energy (Power Division) argues that due to sufficient stock of furnace oil and availability of gas, new imports are not required.
The sources told that Power Division in a letter has conveyed to Petroleum Division and PSO for not importing furnace for both projects. Earlier, PSO in a letter had informed the Power Division that it still maintains availability of fuel oil based on the demand placed by the Power Division for power customers including Gencos from Oct to Dec 2017. In order to accommodate the incoming cargoes and avoiding heavy demurrages, PSO will have to contribute supplies to the customers as per demand. Import of fuel oil was planned on the revised daily requirement of 6600 MTs in June 2018 for TPS Muzaffargarh.
Therefore, in view of the present available ullage of 25,000 MTs TPS Muzaffargarh, PSO has been maintaining supplies to TPS Muzaffargarh which is also in compliance with the outcome of the meeting held in the Ministry of Energy (Power Division) on June 26, 2018 attended by PSO and Genco officials, whereby it was decided that Gencos stations will take receipt of fuel oil so that stocks as per TPS storage capacity are maximized.
Under the circumstances, PSO urged NPGCL authorities to arrange decantation of the reporting tank-lorries and tank-wagons followed by loads in transit so that storage is filled up as per ullage available. This will also help in minimizing the accumulation of tank-lorries and reducing the oil cargo rail traffic which is a law and order and security concern in the present environment besides avoiding unnecessary detention charges.
Raja M Faisal Deputy General Manager Aviation, Marine & Exports Commercial, in a letter to Chief Executive Officer (CEO) Genco-III, Northern Power Generation Co Ltd TPS Muzaffargarh stated that in view of no consumption at TPS Muzaffargarh and build up of stock inventory, as well as no demand for July 2018 onwards provided by Ministry of Energy (Power Division), PSO will be reviewing the supply position for TPS Muzaffargarh.
PSO has also requested Jamshoro Power Company Limited to provide revised month-wise demand for the quarter July–Sep 2018 through the Power Division keeping into consideration the timely placement of orders 60 days ahead required for procurement cycle to import.
