ISLAMABAD: The government has planned to build modern refinery at Khalifa point with production capacity of 250,000 barrels per day and Pak-Arab Refinery Company (Parco) will materialise this mega project.
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told The News the government is going to undertake a new effort for building the refinery at Khalifa point near Hub in Balochistan. The estimated cost of the proposed refinery hovers around over $5 billion.
The project was initially announced in 2007 and was to be built with financial assistance from the Abu Dhabi-based International Petroleum Investment Company but was scrapped in 2012 as Abu Dhabi had argued that it had no required funds for the project.
The federal government and the United Arab Emirates (UAE) that have 60:40 ownership of Parco, will arrange financing for the project with its current and expected profits, the minister said.
A 250 megawatts power plant will also be built to assist the refinery's construction. Due to increasing demand and limited production capacity, the government imports approximately $14 billion worth of petroleum products. The project is being undertaken to reduce reliance on imports, Abbasi said.
“We also need deep conversion oil refinery somewhere in mid or in up country as 100 percent petro chemicals are being imported in the country, the minister said. However, in the same breath, he said this is an uphill task for investors to erect the refineries, but demand in the country is very much there. The minister said the country imports 70 percent petroleum products and 30 percent demand is being met by the existing refineries.
