KARACHI -The Pakistan State Oil plans to import 1,085,000 MTs of fuel oil during August 2009, said PSO Managing Director Irfan Qureshi on Saturday. While giving out the presentation on current product supplies to power sector in the country, he said, out of the total fuel oil to be imported, 220000 MTs fuel oil was for refinery production, 715,000 MTs was the import plan of HSFO and 150000 MTs is the import plan for LSFO. Per day supply of fuel oil will be 35,000 MTs, he added. He said that despite the non payment by the energy sector and the huge receivable amount of Rs 62.667 billion from power sector, including WAPDA, HUBCO, KAPCO and LSFO-HSFO difference, The additional amount of Rs. 3.4 billion is receivable from GoP on account of PSOs old LSFO-HSFO differential claim. About the modes of electricity generation, he said that the hydel energy is available from Mangla, Tarbela and Ghazi Barotha dams and various other smaller dams located in Northern Areas and Pakistan Occupied Kashmir. He said, Due to disagreement amongst provinces there is no possibility of a new dam in near future. The gas availability for power generation is diminishing especially during winters and in Ramadan because of gas loadshedding. The only sources left are PEPCO generation companies and IPPs, the thermal generation GENCOs and KESC is 2,500 MWs (TPS Muzzafargarh, TPS Jamshoro, TPS Gaddu, Faisalabad and Piran Ghaib) and thermal generation from IPPs is 6074 MW (HUBCO, KAPCO, AES Lalpir, Southern, Atlas, Saba, Japan, Kohinoor, Tapal and Gul Energy). He said that the importance of thermal generation comes as the hydel electricity and natural gas availability for turbines is limited. The balancing factor is thermal energy plants i.e. WAPDA, KESC and IPPs, he said. The plants of WAPDA and KESC are more than 20-30 years old and their efficiency level is less than that of IPPs. The total generation through these power plants is 6074 MWs, he said. The root cause of low stocks of furnace oil at power plants is due to non-payment of WAPDA bills by consumers and WAPDA in turn not paying IPPs for the energy generated. At the same time, it is unable to procure the required fuel oil from PSO, he said. He said that the IPPs like HUBCO and KAPCO are not paying PSO for the supplies and remaining IPPs do not have funds to buy fuel from PSO, thus, exposing the country to extended loadshedding and public outcry. To overcome the situation, he said, the government formed a committee on 21st July, which asked the gas companies to minimize the gas supply to power sector and directed PSO to supply 35000 MTs/day to GENCOs and IPPs. He further said that in short and medium term plans PSO is planning those GENCOs to enter into long term Fuel Supply Agreements (FSAs) with PSO. On the basis of FSAs with GENCOs, PSO will strengthen infrastructure and railways to increase TW fleet, he added. Assurance to settle PSO monthly outstanding amount in the subsequent months immediately, PSO has proposed payment of Rs 500 million per day by PEPCO until the entire outstanding amount is cleared, he said. Furthermore, to improve infrastructure the GENCOs to build up stocks at sustainable level of at least 10 days cover at full load. IPPs have to build their inventory as per their contractual arrangements with PSO. Moreover, connectivity of Port Qasim and KPT, enhancement in the capacity of Pakistan Railways to transport furnace oil, expansion in current Tank Lorry Fleet, improve decantation arrangement at GENCOs especially for winter season and lastly the up-gradation of PSO infrastructure will improve the situation, he concluded.