KARACHI: Prudent planning and strategic thinking. Pakistan State Oil (PSO) has enabled considerable savings and created value for end users by taking the following steps:
As of today, PSO has scrapped the spot tender for October 22-23, 2021, and replaced it with cargo under the long-term contract from Qatar Gas using contractual provisions and prudent rescheduling, said a statement issued on Wednesday.
PSO strategically planned for winters (Jan-Feb 2021 & Nov-Dec 2021) in advance, when spot prices are usually at their highest, and arranged 28 cargoes instead of 20 under long-term contracts (6 cargos each in Jan and February 2021 & 7 cargoes each in November and December 2021). This has been planned to meet the ever-increasing gas demand in winters at the lowest possible rates. Compared with current spot market rates, this translates into approximate savings of $295 million.
PSO has also enabled considerable savings by reducing the number of spot cargoes from 12 to 4 in the year 2021 using contractual provisions available while maximizing long-term cargoes through contracts from 60 to 70.
Furthermore, the company has reduced the suspension period of LNG supply in Sep 2021 owing to scheduled FSRU dry dock activity from approximate 90 hours to 60, by bringing the FSRU laden with cargo under the long-term contract with Qatar, thereby curtailing the downtime for the industry and saving considerable cost to the economy.
PSO is committed to safeguarding Pakistan’s national interest through effective planning and making the best possible decisions.