ISLAMABAD: Pakistan’s energy ministry has sought recommendations from industrial experts and major local refineries on importing crude oil from Russia, as the country faces a growing energy crisis.
Former Prime Minister Imran Khan, who arrived in Russia in February the day it launched a full-scale invasion of Ukraine, has said Moscow was willing to offer oil at cheaper rates to Pakistan. Pakistan’s Finance Minister Miftah Ismail, who is in the new cabinet of PM Shehbaz Sharif, has rubbished Khan’s claims and said Islamabad would be willing to buy oil at cheaper rates from Russia only if Moscow made the offer and Islamabad didn’t have to face sanctions on the deal.
In a letter to the Pak-Arab Refinery, National Refinery, Pakistan Refinery and Byco Petroleum, the energy ministry asked for recommendations on the import of crude oil from Russia.
“I am directed to refer to the subject cited about [Import of Crude Oil from Russian] and to request to furnish a detailed analysis with regard to option of crude oil along with the recommendations,” Thair Hussain, Deputy Director at the Energy Ministry said.
The ministry sought recommendations on the technical sustainability of crude grades in view of each refinery’s configurations and yield.
“Quantity and grade of the subject crude to be required by the refinery,” the letter said, asking the oil companies to submit the recommendation on “transportation/freight analysis for imports from Russia in comparison with normal imports from the Middle East based on cost and benefit analysis.”
It also asked for recommendations on “payment methodology” in case of crude oil import and “existing commitment to upliftment from the Arab Gulf region with respect to term contracts.”
Pakistan’s monthly fuel oil imports are set to hit a four-year high in June, Refinitiv data shows, as the country struggles to buy liquefied natural gas (LNG) for power generation amid a heatwave that is driving demand.
