Gwadar China Oil Pipeline will extend from Gwadar to China for convenient export of crude oil. The task has been given to Frontier Works Organization (FWO).
Gwadar China Oil Pipeline will connect Gwadar with Western China allowing Beijing to diversify and speed up import of crude oil. Prime Minister Nawaz Sharif floated the idea during his visit to China. Reportedly, Pakistan is set to have a surplus of oil in the future as Pak-Arab Refinery Limited (PARCO) decided to revive the Khalifa Refinery Project worth $6 billion. The project was shelved by the United Arab Emirates during the previous rule of Pakistan Peoples Party (PPP).
The refinery will be set up in Baluchistan and will be able to process around 250,000 barrels of crude oil every day. Given the surplus of oil, Pakistan should be able to export majority of it utilizing Gwadar China Oil Pipeline. Byco, Pakistan’s largest refinery, can now refine close to 155,000 barrels per day as the company recently completed work on its second unit capable of refining 120,000 barrels per day. Previously, PARCO was the largest refinery in Pakistan with the capacity of 90,000 barrels per day, followed by National refinery at 68,000, Pakistan Refinery at 48,000 and Attock Refinery at 45,000 barrels per day. With the addition of Khalifa Refinery Project, the refinement capabilities of Pakistan should exceed far beyond the demand producing a significant quantity available for export.
Gwadar China Oil Pipeline could also be connected with Iran. Tehran already offered to build a pipeline connecting Gwadar with Iran. Iran also expressed desire to set up an oil refinery capable of refining 400,000 barrels per day at Gwadar Port during PPP rule. Gwadar China Oil Pipeline may be implemented as soon as the Chinese take operational control of the Gwadar Port, a port that lies rather close to the Persian Gulf where nearly 40% of the world’s oil passes.
While the Gwadar China Oil Pipeline is quite the ambitious project, many such pipelines around the world have been completed and run successfully. Pakistan could be looking at something similar.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.