The Pak Arab Refinery Company (PARCO) will establish a state-of-the-art deep conversion coastal refinery at the Khalifa point near hub in Baluchistan. This refinery will have a capacity to refine 300,000 barrels of crude oil per day. The Board of Directors of PARCO approved the initiation of a feasibility study in this regard. Officials stated,
Once the feasibility study gets completed, then the top management of the company will proceed accordingly. This would be the first-ever largest project in the history of oil and gas sector as its magnitude will be equal to the Tarbela Dam.
As per the Federal Minitster for Petroleum and Natural Resources Shahid Khaqan Abbasi, an investment of $5 billion will be required to this effect, a sum that has been allocated by the UAE. He further stated that PARCO BoD gave initiation for the feasibility study to what will be the biggest coastal refinery with hydrocracker technology. The final decision by PARCO will be made after the conclusion of the feasibility study. The land that was previously allotted to 6,600 MW coal-based power plant will be utilized for the refinery.
If the project goes through, the government of Pakistan will hold 60% shares while UAE will hold 40%. The refinery will be set up by PARCO. The refinery is seen to positively impact Pakistan’s growing demand of POL (petroleum, oil and lubricants) products, especially in the wake of CPEC (China Pakistan Economic Corrior).
Read More: CPEC now Valued at $55 Billion
It was also reported that PARCO will be expanded to increase its refining capacity from 100,000 barrels per day to 125,000 barrels. As such, Pakistan imports 80% of petroleum products. Pakistan currently imports oil product of 16.93 million tons per annum including 6.6 million tons of furnace oil, 2.6 million tons diesel, 2.3 million tons petrol, 0.13 million tons jet fuel, and 8 million tons crude oil. If the refinery is indeed set up by PARCO, Pakistan’s reliance on imports of furnace oil, jet fuel, petrol and diesel will come to an end as the proposed refinery will be able to deliver the finished product.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.