KARACHI: The Oil and Gas Regulatory Authority (OGRA) has granted approval to three major local refineries to export a combined 160,000 metric tonnes (MT) of surplus furnace oil during the current month, following in-principle clearance from the National Committee on Management of Crises (NCMC).
According to separate notifications issued by the regulator, Pakistan Refinery Limited (PRL) has been authorised to export 50,000 MT of furnace oil, Pak-Arab Refinery Limited (PARCO) has received approval to export 60,000 MT, while National Refinery Limited (NRL) has been permitted to export 50,000 MT of high-sulphur furnace oil (HSFO).
OGRA said the approvals are subject to strict conditions to ensure Pakistan’s domestic energy security. The refineries must maintain strategic furnace oil reserves to meet the power sector’s requirements and continue supplying the local market in accordance with the approved national supply plan.
The regulator noted that the export permissions were issued in line with the NCMC’s decision, which endorsed the exports while emphasising the importance of safeguarding domestic fuel availability.
“The approvals are subject to maintaining strategic furnace oil reserves to cater to the requirements of the power sector and ensuring local upliftment in accordance with the approved supply plan,” OGRA said in its directives.
To facilitate timely exports, the authority also instructed the refineries to maximise loading operations at export terminals.
“Refineries are directed to maximise loading flow rates to ensure vessels sail within their assigned loading windows,” the regulator added.
Industry officials said the approvals would help local refineries manage surplus furnace oil inventories more efficiently while ensuring uninterrupted domestic supplies.
They noted that exports have become increasingly important as Pakistan’s electricity generation mix has gradually shifted away from furnace oil toward natural gas, LNG, hydropower, coal, nuclear energy, and renewable sources, significantly reducing domestic demand for furnace oil.
The export approvals are also expected to improve refinery operations by freeing up storage capacity for higher-value petroleum products, enabling refiners to optimise production without compromising strategic fuel reserves needed for electricity generation during periods of peak demand.
OGRA emphasised that the export permissions remain conditional upon full compliance with all stipulated requirements, particularly the maintenance of adequate strategic stocks to ensure uninterrupted fuel supplies for the domestic market.
Story by Tanveer Malik
