Ogra approves export of additional 80,000 tonnes of furnace oil

KARACHI: The Oil and Gas Regulatory Authority (Ogra) has approved the export of an additional 80,000 metric tonnes (MT) of furnace oil, following its earlier approval for Cnergyico Pakistan Limited (CPL) to export 40,000MT.

The accumulation of furnace oil, driven by its low demand in the domestic market, has compelled refineries to seek export options, which require Ogra’s permission. In its latest decision, the regulator has granted Pak-Arab Refinery Limited (Parco) approval to export 50,000MT of furnace oil and National Refinery Limited (NRL) permission to export 30,000MT during the current month.

According to Ogra’s letter, Parco is authorised to export its allocation during the fourth week of December. Meanwhile, NRL is permitted to export 15,000MT each from Port Qasim and the Kemari Port in the same period.

Earlier, Cnergyico was allowed to export 40,000MT of furnace oil as refineries struggled to find buyers in the local market. The declining role of furnace oil in Pakistan’s power generation has led to record exports. In the first four months of the current fiscal year, 430,000MT of furnace oil was exported. Monthly exports included 116,000MT in July; 66,500MT in August; 114,000MT in September; and 133,700MT in October.

Electricity generation from furnace oil has dropped by 87 per cent during this period compared to the same timeframe last year. Its use in October was negligible, reflecting the government’s shift towards more cost-effective energy alternatives.