Singapore (Platts)--23Nov2012/125 am EST/625 GMT

Pakistan State Oil has concluded negotiations for the supply of its 2013 term gasoil volumes, awarding the contract to longtime supplier Kuwait Petroleum Corporation, a source with knowledge of the matter said Friday.

PSO will be supplied with between 2.7 million mt and 3 million mt of 0.5% sulfur gasoil over 2013, in line with its 2012 volume.

Term prices were finalized at a premium of around $1.80-1.90/barrel to the Mean of Platts Arab Gulf 500 ppm sulfur gasoil assessments on a CFR basis into Keamari, Karachi.

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The pricing basis changed for 2013, as Platts will reduce the sulfur specification of its benchmark FOB Singapore/Arab Gulf Gasoil assessments from the current 5,000 ppm to 500 ppm starting January 2, 2013.

Pakistan's high sulfur gasoil demand averages 4.5 million-5 million/year.

"Pakistan imports up to 3 million mt of [high sulfur] gasoil a year; in addition to imports, there is another 2 million mt produced at local refineries," the source said.

--Jonathan Nonis, jonathan_nonis@platts.com --Edited by Wendy Wells, wendy_wells@platts.com

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