Country has sufficient stock of furnace oil to meet the country’s energy needs during winter season: Hammad Azhar

ISLAMABAD, Dec 26 (SABAH): Minister for Energy Barrister Muhammad Hammad Azhar says country has sufficient stock of furnace oil to meet the country’s energy needs during winter season.

In a series of tweets on Sunday, Hammad Azhar said Pakistan faced a moderate shortage of furnace oil in summer season as the power plants ran more than last year due to low water levels in dams.

The Minister informed that a new refinery policy is being finalised to shift refineries away from the production of furnace oil.

Hamamd Azhar in summers Pakistan faced a moderate shortage of Furnace oil as FO power plants ran more than last year (as per merit order) due to low water levels in dams. FO consumption was 116% higher. He said that fortunately no further defaults of LNG cargoes took place in nov-dec period therefore FO plants did not need to run.

Hammad Azhar said that now the FO plants are running because of lowering flows from dams (canals closure) and in a couple of days will be consuming 13,000 tonnes/day of FO. Local refineries produce only half that volume and IPPs stocks levels are still below the required levels.

Hammad Azhar therefore the country is well stocked on FO in case of further LNG defaults. The surplus at some refineries is going to IPPs as FO consumption is already above 6000 tonnes/day. Meanwhile a new refinery policy is being finalised to shift refineries away from production of FO.