ISLAMABAD: One of the largest Oil Refinery is likely to be built near Lahore to cater for the energy needs of the province.
The Chinese company has initiated work on the feasibility for setting up deep conversion oil refinery close to Lahore for catering to the upcountry’s needs. The estimated cost of the mega refinery hovers at $6 billion including the construction of the crude oil pipeline from port city to Lahore.
On the sidelines of Boao Economic Forum recently held in the month of April in China and attended by Prime Minister Shahid Khaqaan Abbasi, Pakistan State Oil (PSO) and Power China for the construction of the upcountry deep conversion oil refinery and crude oil pipeline. The project will help reduce the cost of transporting petroleum products via road from refineries in southern areas and also ensure uninterrupted supply.
Pak-China working group on setting up mega project of oil refinery in Lahore has been set up and to this effect Chinese company has started working on the feasibility study. Petroleum Division (Energy Ministry) has written a letter to the government of Punjab asking for the allocation of 1000-1200 acres of land, a senior official told The News.
Keeping in view increasing POL needs after the completion of projects under CPEC umbrella, Pakistan is going to install two mega deep conversion oil refineries one at Lahore and other at Khalifa Point, HUBCO and more importantly the government has asked the existing oil refineries to upgrade. Upcountry refinery to be set close to Lahore and Khalifa Point refinery will produce the POL products at par with the Euro-5 products. The Lahore refinery will be having the capacity to refine 2500,00-300,000 barrels per day.
To a question, the official said that Lahore refinery will be provided the crude oil through a pipeline that will be laid down either from Karachi or from Somiani port, Balochistan. The experts say the laying of pipeline from Somiani will be more feasible and practical as in Karachi, the congestions of pipeline has aggravated.
The official said that this very vital project will be executed under Public Private Partnership (PPP) mode. By 2030, the demand of the petroleum products in upcountry that include Punjab, KPK, and Northern Parts of the country will inflate up to 60 million tons and it is a wakeup call for the existing refineries to upgrade themselves to cater to the future needs of the country.
More importantly, the financial closure of Khalif Point Refinery has also been achieved. Pak-Arab Refinery Company (PARCO) will establish Khalif Point Refinery with a capacity to refine the crude oil up to 300,000 barrels per day.