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Thursday March 28, 2024

$500m oil pipeline ready to be discussed in next ECC meeting

By Khalid Mustafa
July 25, 2017

ISLAMABAD: The Ministry of Petroleum and Natural Resources (MoPNR) has prepared a summary about the most strategic project of second white oil pipeline project (WOPP-II) that is to be pitched for approval most probably in the forthcoming meeting of the Economic Coordination Committee (ECC) at the cost of about half a billion dollars. 

Once the ECC extends go-ahead, the contract of the project will be given to the winning bidder after holding the ICB (International Competitive Bidding) as per PPRA rules, a senior official privy to the development told The News. The project is to consist on three segments. The second white oil pipeline will be laid down from Macheki to Peshawar for carrying the motor-gasoline (petrol) and diesel from mid to up-country.   

The government has decided to lay down the underground white oil pipeline starting from Macheki to Tamujabba (Peshawar) that will transport motor gasoline and diesel to the up-country with a view to averting the ghastly incidents on the roads in the country on account of oil tankers movement,  

“The Ministry of Petroleum and Natural Resources have assigned the Inter-State Gas System (ISGS) to initiate the working on the project with immediate effect,” top official in the ministry confirmed this to The News. Now the summary has been prepared for ECC to get the green signal from the competent forum. This will be the second White Oil Pipeline in the country as the first one was laid down from Karachi to Kot Addu--Pak-Arab Refinery Company (PARCO).” 

The official said that Managing Director of ISGS Mobin Saulat had played pivotal role in laying down the first white oil pipeline which is why the decisions makers have asked the ISGS to initiate the working on the second white pipeline that will transport the petroleum products from mid country to up country. To a question, the official said that the said project may cost $500 million depending upon the allied facilities and pumping stations are attached to it.  The sources said the Frontier Works Organisation (FWO) is also interested in the said project, but the experts are of the view that the FWO lacks the expertise required to undertake and execute such kind of high tech project. 

 The documents showing the future plans of the FWO available to The News unfold that FWO also possess the plan to build the mammoth infrastructure of a billion of dollars with capacity to store fuel reserves of 810,000 tons for ensuring the smooth supply of fuel to keep stimulating the economy across the country without any hindrance.  And to this effect, the FWO has carved out strategic but gigantic plan to build the huge project that is the combination of four major segments involving the development of new motor gasoline (petrol) jetty with the provision of diesel handling and storage of 300,000 metric tons at Port Qasim for avoidance of demurrages to commuting ships. 

“Under the second segment of the project, at various points, the FWO intends to develop or renovate the strategic storages along with the white oil pipeline and future pipeline extension route. The FWO will build at Port Qasim the storage facility of 300,000 metric tons, Shikarpur 50,000 tons,  Mehmood Kot 100,000 tons, Faisalabad 50,000 tons, Macheki 100,000 tons, Thalian 160,000 and at Tamujabba will erect facility to store 50,000 tons of fuel.” FWO will, under the project, also lay down pipeline parallel to MFM proposed as MFM-2 (Mehmmod Kot --- Fasialabad/ Gatti---- Macheki. And the fourth segment includes the extension of MFM-2 pipeline from Faisalabad to Thalian and then up to Tamujabba.”