ISLAMABAD: One of the largest Oil Refinery is likely to be built nearLahore to cater for the energy needs of the province.
The Chinese company has initiated work on the feasibility for setting updeep conversion oil refinery close to Lahore for catering to theupcountry’s needs. The estimated cost of the mega refinery hovers at $6billion including the construction of the crude oil pipeline from port cityto Lahore.
On the sidelines of Boao Economic Forum recently held in the month of Aprilin China and attended by Prime Minister Shahid Khaqaan Abbasi, PakistanState Oil (PSO) and Power China for the construction of the upcountry deepconversion oil refinery and crude oil pipeline. The project will helpreduce the cost of transporting petroleum products via road from refineriesin southern areas and also ensure uninterrupted supply.
Pak-China working group on setting up mega project of oil refinery inLahore has been set up and to this effect Chinese company has startedworking on the feasibility study. Petroleum Division (Energy Ministry) haswritten a letter to the government of Punjab asking for the allocation of1000-1200 acres of land, a senior official told The News.
Keeping in view increasing POL needs after the completion of projects underCPEC umbrella, Pakistan is going to install two mega deep conversion oilrefineries one at Lahore and other at Khalifa Point, HUBCO and moreimportantly the government has asked the existing oil refineries toupgrade. Upcountry refinery to be set close to Lahore and Khalifa Pointrefinery will produce the POL products at par with the Euro-5 products. TheLahore refinery will be having the capacity to refine 2500,00-300,000barrels per day.
To a question, the official said that Lahore refinery will be provided thecrude oil through a pipeline that will be laid down either from Karachi orfrom Somiani port, Balochistan. The experts say the laying of pipeline fromSomiani will be more feasible and practical as in Karachi, the congestionsof pipeline has aggravated.
The official said that this very vital project will be executed underPublic Private Partnership (PPP) mode. By 2030, the demand of the petroleumproducts in upcountry that include Punjab, KPK, and Northern Parts of thecountry will inflate up to 60 million tons and it is a wakeup call for theexisting refineries to upgrade themselves to cater to the future needs ofthe country.
More importantly, the financial closure of Khalif Point Refinery has alsobeen achieved. Pak-Arab Refinery Company (PARCO) will establish KhalifPoint Refinery with a capacity to refine the crude oil up to 300,000barrels per day.