Pakistan has sent a reminder to the UAE asking for a response to the IGA (Inter-governmental Agreement) draft for the import of POL products, officials of the Energy Ministry told The News.
We have sent the reminder through MOFA (Ministry of Foreign Affairs) to the UAE government, seeking its response to the IGA draft Petroleum Division had sent to the government in December 2022,” the spokesman of the Petroleum Division confirmed to The News.
“We want sustainable supply of POL products in the country under the GtG agreement with the UAE government and it will also help Pakistan State Oil (PSO) to end reliance on buying POL products from the open market. Currently, PSO has to pay premium to international suppliers,” the official sources said. In case the IGA draft gets approved by the UAE government, negotiations for a commercial agreement for the import of Mogas under GtG mode will start between officials of Pakistan State Oil (PSO) and Abu Dhabi National Oil Company (ADNOC). “The government wants to import from the UAE under GtG mode 1.5 million tons of Motor Spirit per annum, which means 30 cargoes in one year under the expected 5-8 year deal.”
This would translate into the country importing two and a half to three cargoes a month from the UAE. During the Abu Dhabi talks held in the first week of November 2022, top officials from both sides had agreed to enter into a GtG deal for the import of Mogas and jet fuel.
“This would help Pakistan have sustainable availability of petroleum products in the country. More importantly, the GtG deal would also provide a monetary space in terms of premiums in importing petrol and other products,” said the official adding they were hoping that the commercial agreement between PSO and ADNOC would be finalised soon after the IGA was inked.