State-owned Kuwait Petroleum Company (KPC) and Pakistan State Oil Company (PSO) have finalised a gasoil supply deal for 2015, Reuters has reported.
Pakistan will buy about 2.5mn tonnes a year of high sulphur gasoil from KPC, with a tolerance level of plus and minus 10%.Â
The contract was finalised at a similar price to this year. PSO had sealed its 2014 gasoil term contract with KPC at a premium of between $1.80 and $1.90 a barrel above Middle East price quotes, on a delivered basis, traders said.
The new term contract will be at stable volumes 2014. Kuwait supplies 90% of Pakistan’s imported gasoil to meet its electricity generation and transport demands.
Recently, Pakistan’s gasoil demand has weakened compared to the past few years due to a slower economy, traders said.
PSO has not finalised a jet fuel term with KPC, one of the sources said, though the reason was not immediately clear.
Pakistan’s gasoil demand has weaker than in past few years due to a slower economy, traders said.
