Pakistan has provided information to Iran regarding specifications of furnace oil, consumption, and jetty conditions for the provision of furnace oil on deferred payment for a three-month period. Iran has formally agreed to provide furnace oil on deferred payment for a three-month period to ensure uninterrupted fuel supply for power generation and mitigate the energy shortfall in the country.
The said facility by Iran would secure foreign exchange reserves. Sources in Petroleum Ministry told Business Recorder that Iran had sought information about the discharge sites of fuel, jetty conditions, and specifications of furnace oil. Iran also required information about quantity of furnace oil consumed in Pakistan on monthly basis and operational capacity of storage tanks.
Pakistan has provided technical information and specifications of furnace oil and jetty conditions that would help technical experts of the two countries to finalise the modalities of agreement under which Iran would provide furnace oil on deferred payment. Technical experts of Pakistan and Iran would meet soon in Tehran to finalise the arrangements for the provision of furnace oil.
Sources said that Pakistan has notified Iran of 95,000 tons displacement capacity of fuel at Fauji Oil Terminal Corporation. Its minimum designed capacity is 9 million tons. Two ports are available in Pakistan for discharging fuel oil--Zulfiqarabad Oil Terminal Complex was designed for high sulphur furnace oil facility with storage capacity of 25000 tons, and Keamari Terminal with storage capacity of 18500 tons.
Pakistan has further notified Iran that the country's total consumption of furnace oil was 10 million tons per annum. Pakistan imports 5-6 million tons furnace oil annually to meet its requirements. The power sector consumes a major quantity of furnace oil to generate power in the country.
Sources said that Pakistan and Iran would soon ink an agreement after finalising the modalities of the furnace oil import on deferred payment. The Iranians are currently working on the specifications of the furnace oil import provided by Pakistan prior to finalising the agreement in this regard.