PSO pays $0.7m demurrages as it fails to off-load RLNG in March
2 min read
ISLAMABAD: Pakistan State Oil (PSO) has paid $0.7 million demurrage charges as it failed to offload the RLNG from the foreign ship, which anchored at Bin Qasim Port.
PSO failed to offload the RLNG ship that resulted in making hefty amount of $700,000 demurrages to shipping company in one month. However, PSO had held power sector responsible for refusing to take full supply of RLNG.
Pakistan State Oil (PSO) has long and short term contracts of RLNG import with Qatar and Gunvor for supply of 600 mmcfd RLNG. PSO is bound to take six LNG cargoes in a month to transport it to gas utilities-SSGCL and SNGPL.
Officials told Newztodays.com that PSO had incurred a loss of $700,000 due to less off-take by the power sector in month of March. Due to lockdowns, the demand of electricity had also been reduced by 15 per cent and therefore, power sector had refused to take full supply.
Normally, power sector has been reluctant to take LNG being imported by PSO at higher rates. The deal was done in PML-N government and PSO had signed commercial deal at 13.37 per cent of Brent oil. Due to higher prices, power sector had been showing reluctance to lift RLNG. PSO had dropped full cargo of QatarGas on April 2.
In the entire business chain, importers and terminal operators are also making money due to capacity payments. Qatargas is always said to make money from Pakistan due to higher price and there is review after ten years. Pakistani side had taken up the matter with Qatar but they refused to negotiate price before 2025.So, power sector has decided now that they will not take supplies from Qatar after 2025.
The power consumers also suffered when RLNG based power plant meant to use LNG remained shut down most of the time and RLNG was diverted to domestic sector that had trapped SNGPL into Rs 73 billion debt which is to be recovered from consumers yet. Brokers are making money and consumers are suffering.
About The Author
