Shell adds 800 new tankers to its hauler fleet

ISLAMABAD: The Shell Pakistan has claimed that after inducting 800 new state-of-the-art oil tankers to its hauler fleet, it has become the only oil marketing company in Pakistan that is fully compliant with the government’s prescribed rules and requirements for transpiration of fuel.

The CEO/MD of the Shell Pakistan, Haroon Rashid, said this while interacting with the media people here after the one-day conference for showcasing energy solutions in lubricants, fuel and technological advancement in the energy industry.

It is worth mentioning that on June 25, 2017, an oil tanker of the Shell Company caught blaze in Ahmedpur Sharqia, Punjab, took lives of around 200 people and around 100 suffered severe burn injuries.

The Oil and Gas Regulatory Authority (Ogra) then slapped a Rs10 million penalty on the company and also directed the petroleum marketing company to pay a million rupees each to the families of deceased and half-a-million rupees to injured persons. In dollars term, this amount is around $2.6 million. Official of the company said that the amount has been paid to the regulator and the affected people.

Since this incident, the company has inducted 800 state-of-the-art oil tankers to its haulier fleet with GPS tracking system installed in them. Although the market share of the company dropped from 18pc to eight per cent after the incident, as we removed the substandard tankers of the fleet, but now it has reached up to 10 per cent and is increasing.

Regarding its investment plans and current projects, he said that the company has plans of expanding its business in Pakistan by investing in 786km white oil pipeline (WOP) from Karachi to Mahmood Kot and then goes up to Machhike near Lahore. There are also other shareholders in this project as a joint venture company ie Pak-Arab Pipeline Company Ltd (Papco) was created in which Shell has 26pc shares, Parco with majority 51pc, PSO 12pc and Total Parco marketing limited has 11pc shares.

He said that the project would be commissioned by mid-2019. With new white oil pipeline, he said that the country would have additional storage of 120,000 tons from next year.

He also said that the LNG re-gasification terminal is being built by a joint consortium of Shell, Engro Corporation, Gunvor and Fatima Group at Port Qasim. This would be the Pakistan’s first privately-owned terminal with no government guarantee. He said that the deal in this regard was reached in 2016.

The CEO further said we also have plans to set up modern retail outlets with different facilities like shopping mall along with CPEC route.

Rashid said after the government’s imposition of restrictions on metals level (manganese and iron) in description of 90/92/95/97 RON petrol (domestically produced and imported), the company has fully applied on its products.

The government has capped the limit of 40mg/litre which was earlier around 100mg/liter. Shell is fully complying with the restriction and by June 2019, we would bring it down to 20mg/litre. While the V-power product is almost clear of the metal contents. He said that auto manufacturers had complained about it, and it was good step of the government.