Kuwait has agreed to build an oil pipeline in Pakistan from the south to north for transporting petroleum products.
The oil pipeline will transport petroleum products from Karachi to major consumers in Punjab province of Pakistan. An official stated,
During a recent visit to Kuwait, Pakistani officials invited the Gulf oil producer to set up an oil refinery in Baluchistan and lay a white oil pipeline; its response was very positive and a high-level Kuwaiti delegation will arrive in Pakistan to discuss the two projects.
The meeting also saw lifting of visa bans on Pakistanis. Kuwait is one of the major oil suppliers to Pakistan. Currently, the white oil pipeline is run by Pak Arab Pipeline Company Limited (PAPCO), which transports diesel to central regions of Pakistan. Diesel accounts for 60% of total petroleum consumption in the country. Apart from the pipeline, oil is transported through tank lorries. As per estimates, close to $200 million worth of oil is stolen every year using such means of transport. The official said,
The second white oil pipeline will not only protect our environment, but it will also be a safe source of fuel supply.
Pakistan has given the green light to Kuwait Petroleum Corporation for developing the refinery in the coastal area of Baluchistan while the Economic Coordination Committee (ECC) of the cabinet also permitted import of furnace oil and jet fuel from Kuwait.
Currently, the annual demand of petroleum products in Pakistan is around 23 million tons. It is expected to increase to 27 million tons by 2020. Of the demand, 44% is met by local refineries while 56% is imported. The new refinery and an oil pipeline project will certainly help Pakistan in self-sufficiency. It was also seen as a welcome investment from Kuwait in an under developed province. The move is set to give a much-needed boost to Kuwait-Pakistan ties.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.