Pakistan places first order for discounted Russian crude

[Neelo]

Remind us all again why you wanted to depose of Imran Khan if at the end you were going to Moscow anyway?

This is how backwards and shortsighted GHQ is.…I’d be surprised if they even had a plan beyond 6 months from now.

 

[farok84]

Tribune.com.pk ....... these are the monkeys on GHQ payroll claiming this and are writing a fraud story.

Hi,
Although it's the deal for just one cargo, to validate Pakistan's will and ability to pay, it is nonetheless an excellent and welcome news. Hope everything goes smoothly.


21 Apr, 2023 05:41
Home Business News

Pakistan places first order for Russian oil – official​

Moscow will sell crude to Islamabad at discounted rates, the Pakistani petroleum minister has said

Islambad, Pakistan. © Aamir QURESHI / AFP

Pakistan has placed its first ever order for Russian crude as it seeks cheaper energy options in the face of macroeconomic challenges, the country’s petroleum minister, Musadik Malik, announced on Wednesday.

Under the new deal, Islamabad will buy crude oil at a discount, with supplies expected to reach 100,000 barrels per day if the first transaction goes through smoothly, the official told Reuters.

Pakistan will be importing two types of oil – Russia’s flagship Ural blend and Sokol. Refined products were not included in the contract, but Russian industry experts will reportedly assist in refining the crude in Pakistan. The first oil cargo will arrive at Karachi Port in mid-May, according to Malik.

“Our orders are in, we have placed that already,” he said, confirming the arrangement.
He added that Pakistan’s Refinery Limited (PRL) will initially process the Russian crude, with other refineries to be included later after a trial run.

Pakistan, the world’s fifth most populous country, has been struggling with an acute energy shortage, and the surge in global oil and gas prices has exacerbated the situation. Imports of the fuel have become five to ten times more expensive due to increased demand in the EU.

Last year, Islamabad imported 154,000 barrels per day mostly from Saudi Arabia and the United Arab Emirates. Now, as the country is looking to source up to 33% of its crude imports from Russia, Middle Eastern supplies are expected to drop.

With discounted Russian oil, cash-strapped Pakistan will see relief in the face of a balance of payments crisis and critically low foreign exchange reserves. According to statistics, energy imports make up the bulk of the country’s external payments.

Transactions for Russian energy supplies will reportedly be settled in currencies other than US dollars. However, Malik declined to say whether Moscow and Islamabad would use Chinese yuan or UAE dirham, explaining that he would not disclose the commercial side of the deal.

Pakistan places first order for Russian oil – official

Russia is expected to deliver its first oil cargo to Karachi Port in mid-May, the Pakistani petroleum minister has said

www.rt.com

Probably due to people not knowing that Russia changed the Urals blend after the U.S. stopped buying heavy crude from Russia.

Hi,

Hasn't that been around for more than a good year and half now? And it is largely attributed to Russia voluntarily cutting Ural's output from high sulfur regions?

 

[Communism]

Pakistan places first order for Russian oil – official

Russia is expected to deliver its first oil cargo to Karachi Port in mid-May, the Pakistani petroleum minister has said

www.rt.com

Hi,

Hasn't that been around for more than a good year and half now? And it is largely attributed to Russia voluntarily cutting Ural's output from high sulfur regions?

The time this was talked about was the beginning of the Ukraine escalation, and it was not widely known at that time.


The quote you show is specifically from within a few months of the escalation in 2022.

 

[farok84]

The time this was talked about was the beginning of the Ukraine escalation, and it was not widely known at that time.


The quote you show is specifically from within a few months of the escalation in 2022.

Hi,

Yes, it was first reported back by Reuters in June 2022, and was partially attributed to lack of production from higher sulfur content fields.

"Urals oil loading from Primorsk port is sweeter with the sulphur content falling to 1.59% for cargoes loading in May-June on average, while in January the content from the cargoes was at %1.64 on average, according to the sources’ data. The crude was also slightly lighter with an average gravity of 30.1 degrees API in May from 29.8 degrees in January.

API gravity is a commonly used scale for measuring the density of crude oil. Higher numbers correspond to lighter crude.

Urals oil volumes loading from Ust-Luga and supplied to Europe via the Druzhba pipeline have also seen sulphur content slip to %1.66 on average in May-June from above %1.7 in January this year. Gravity rose slightly, from 30.3 degrees API to 30.6, according to the data.

Urals oil exported from Black Sea Novorossiisk was also sweeter in May-June compared to January, according to the data. Sulphur content in these barrels fell to 1.42% from 1.55% early in the year. The crude was also lighter: gravity rose to 30.65 degrees API in June from 29.5 in January.

Possible quality change also could come from curbs to oil production on certain fields, which provide lower quality crude, two other traders said.

“We saw a decline of output in Bashkortostan and Tatarstan regions that produce high-sulphur heavy oils in April-May, which could help the quality”, one of the traders said."

Russia exporting lighter and sweeter Urals oil as taps Asia demand -sources

Russia has been improving the quality of its flagship Urals crude oil export, making the heavily-discounted grade even more attractive to buyers in Asia who have been snapping it up, data obtained by two industry sources and seen by Reuters showed.

www.reuters.com

For people not updated on Oil & Gas industry, it might be a surprise, but for Pakistan's Petroleum Ministry & the Government, that spent all its energies, first trying to prove, in vain, that Pakistan Refiners can't technically refine Russian crude, then hiding behind US & EU sanction's mantra, it's criminal negligence (to say the least), for which the common Pakistani paid exuberant higher cost for petroleum products and power, crippling Pakistan's fragile economic infrastructure. They are still explicitly importing Crude Oil & have not negotiated a discounted deal for Russian refined petroleum products (Gasoline, Diesel, LPG e.t.c) which should have given masses instant relief, but would have negatively impacted business interests of some quarters involved in smuggling products from our Western neighbor.

For March 2023, following Urals quality was accessed by Platts.

 

[Communism]

Hi,

Yes, it was first reported back by Reuters in June 2022, and was partially attributed to lack of production from higher sulfur content fields.

"Urals oil loading from Primorsk port is sweeter with the sulphur content falling to 1.59% for cargoes loading in May-June on average, while in January the content from the cargoes was at %1.64 on average, according to the sources’ data. The crude was also slightly lighter with an average gravity of 30.1 degrees API in May from 29.8 degrees in January.

API gravity is a commonly used scale for measuring the density of crude oil. Higher numbers correspond to lighter crude.

Urals oil volumes loading from Ust-Luga and supplied to Europe via the Druzhba pipeline have also seen sulphur content slip to %1.66 on average in May-June from above %1.7 in January this year. Gravity rose slightly, from 30.3 degrees API to 30.6, according to the data.

Urals oil exported from Black Sea Novorossiisk was also sweeter in May-June compared to January, according to the data. Sulphur content in these barrels fell to 1.42% from 1.55% early in the year. The crude was also lighter: gravity rose to 30.65 degrees API in June from 29.5 in January.

Possible quality change also could come from curbs to oil production on certain fields, which provide lower quality crude, two other traders said.

“We saw a decline of output in Bashkortostan and Tatarstan regions that produce high-sulphur heavy oils in April-May, which could help the quality”, one of the traders said."

Russia exporting lighter and sweeter Urals oil as taps Asia demand -sources

Russia has been improving the quality of its flagship Urals crude oil export, making the heavily-discounted grade even more attractive to buyers in Asia who have been snapping it up, data obtained by two industry sources and seen by Reuters showed.

www.reuters.com

For people not updated on Oil & Gas industry, it might be a surprise, but for Pakistan's Petroleum Ministry & the Government, that spent all its energies, first trying to prove, in vain, that Pakistan Refiners can't technically refine Russian crude, then hiding behind US & EU sanction's mantra, it's criminal negligence (to say the least), for which the common Pakistani paid exuberant higher cost for petroleum products and power, crippling Pakistan's fragile economic infrastructure. They are still explicitly importing Crude Oil & have not negotiated a discounted deal for Russian refined petroleum products (Gasoline, Diesel, LPG e.t.c) which should have given masses instant relief, but would have negatively impacted business interests of some quarters involved in smuggling products from our Western neighbor.

For March 2023, following Urals quality was accessed by Platts.

View attachment 925823

Not sure what you are trying to argue here.


I was one of the first ones to suggest that Pakistan should import russian crude and/or product on this very forum.


The arguments being made on this thread are simply disingenuous.


People pretend that Pakistan would have imported Russian crude any earlier than now, but that's obviously not the case.


People saw Imran Khan emit verbal diarrhea, as he always does, and then pretended he would have done anything about this, when he was the main reason why the Iran compressed natural gas pipeline was stopped.


Imran Khan was put into power by the Pakistani Military Establishment to try to get more free money from the U.S. by parroting and backing every single non-sense narrative the U.S. was vomitting about China in Pakistan.


He did exactly that, but fell out of favor when the person the Pakistani Military Establishment was trying to pander to, Donald Trump, lost the election.


Therefore Imran Khan was replaced with a more Biden friendly face.


It's not that complicated.

 

[nahtanbob]

Remind us all again why you wanted to depose of Imran Khan if at the end you were going to Moscow anyway?

This is how backwards and shortsighted GHQ is.…I’d be surprised if they even had a plan beyond 6 months from now.

there is no proof Imran Khan was ousted because of his Moscow trip. His trip was scheduled before the Ukraine war.

 

[farok84]

People pretend that Pakistan would have imported Russian crude any earlier than now, but that's obviously not the case.

Hi,
Care to explain further? Why exactly it can't be done earlier?

 

[Communism]

Hi,
Care to explain further? Why exactly it can't be done earlier?

The Pakistani Military Establishment is in charge of Pakistan's foreign policy.


The formal political process is simply a mask.


I'm suggesting that the timeline of events would probably be identical to the current one.


This issue is entirely in the foreign policy domain, so it's entirely in the Pakistani Military Establishment's remit.


Had this been a domestic issue, it might have a different timeline.

 

[farok84]

when he was the main reason why the Iran compressed natural gas pipeline was stopped.

Really? Some reference will be much appreciated. The thread isn't about IP, but would love to know why do you think IP (in its current aggrement) was good for Pakistan and Pakistan's consumers?

 

[Communism]

Really? Some reference will be much appreciated. The thread isn't about IP, but would love to know why do you think IP (in its current aggrement) was good for Pakistan and Pakistan's consumers?

We would be rehashing our earlier conversation about this.


You will say that the sweetheart LNG deal is way better and that the loose commodity trader contract was even better and that it was impossible to predict that the LNG price would ever spike enough to invalidate the usefulness of it.


I will say that the prices for the LNG was never going to be low for all that long, and that pipelined compressed natural gas will intrinsically be more cost efficient, as pipelined compressed natural gas is not only a liability on the purchaser, but also the seller, which essentially makes it always economical.


And that's before talking about transit fees earned to India/China.

 

[farok84]

The Pakistani Military Establishment is in charge of Pakistan's foreign policy.


The formal political process is simply a mask.


I'm suggesting that the timeline of events would probably be identical to the current one.


This issue is entirely in the foreign policy domain, so it's entirely in the Pakistani Military Establishment's remit.


Had this been a domestic issue, it might have a different timeline.

Hi,

I guess I misunderstood your earlier post, thought you were talking about Urals Blend quality improvements and that somehow enabling Pakistan to refine it.

We would be rehashing our earlier conversation about this.


You will say that the sweetheart LNG deal is way better and that the loose commodity trader contract was even better and that it was impossible to predict that the LNG price would ever spike enough to invalidate the usefulness of it.


I will say that the prices for the LNG was never going to be low for all that long, and that pipelined compressed natural gas will intrinsically be more cost efficient, as pipelined compressed natural gas is not only a liability on the purchaser, but also the seller, which essentially makes it always economical.


And that's before talking about transit fees earned to India/China.

I will say Pmln's Qatar LNG contract was way better than PPP's IP contract. If Iran agrees to lower gas price through IP and even match PTI's Qatar LNG contract price, Pakistan's establishment will find a way to circumvent all sanctions and will themselves construct it via their subsidiary FWO.

 

[Abid123]

Russia is a bankcrupt broke country where people search for foods in dustbin where elderly babushka sells things in street you bitch kgb

Russia is way more developed than Pakistan. Are you delusional?

 

[Baburfromsarmarkand]

Russia is way more developed than Pakistan. Are you delusional?

lol hes a moron. one look at moscow skyline vs lahore or isb tells the story