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Pakistan says first shipment of Russian oil expected by month end

Pakistan, Russian oil, Oman port, Musadik Malik, first shipment

ISLAMABAD: Minister of State for Petroleum Dr Musadik Malik on Wednesday said the first shipment of 100,000 tons of crude oil from Russia was poised to anchor at Oman Port by the month’s end, from where it would be gradually brought to Pakistani ports by small ships.

In an informal conversation with journalists, he explained that the oil shipment was anchored at Oman port just because of the logistic issues.

Thus, he added that the decision to employ smaller ships for the onward journey was deemed the most practical and efficient solution.

Musadik Malik said the annual demand for petrol and diesel in Pakistan stood at 20 million tons, while local production only accounted for 10 to 11 million tons annually.

In contrast, he added, the consumption of furnace oil had significantly diminished over time.

Consequently, Musadik Malik emphasized the urgent requirement for a deep conversion refinery with a three to four million barrels capacity.

Without such measures, projections indicate that by 2032, he added that the demand for petrol and diesel alone could reach 33 to 34 million tons, leaving a shortfall of approximately 22 million tons that would need to be imported.

The minister said the government was ready to collaborate with international investors in that regard because crude oil storage in the country was crucial to ensure energy security.

He said the government had introduced the greenfield refining policy of the petroleum sector as the country’s per capita energy consumption was the lowest in South Asia.

Read more: Pakistan places first order for discounted Russian crude oil

It may be noted that Pakistan placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow on April 20.

He said Pakistan’s Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included later after a trial run.



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