*KARACHI:* The Pak Arab Pipeline Company (PAPCO)’s White Oil strategicpipeline worth $200 million is ready to be complete by 2019.
It will greatly enhance the oil and fuel quick and safe transportaioninside Pakistan required both in peace and war.
Pipeline, which stretches over 748 kilometres connecting Karachi withMahmood Kot in South Punjab is being upgraded, a development that willincrease the country’s motor gasoline (Mogas) storage capacity by 150,000tons and reduce petrol prices by one-third, said officials.
The pipeline, which was commissioned in 2004, was dedicated to thetransportation of High-Speed Diesel and reduced the movement of about 4,000trucks between Karachi and Mahmood Kot, in the process, resulting in costefficiencies and safer transportation of the fuel.
Since the demand for Mogas has been increasing at an exponential rate, theupgrade will allow transportation of petrol to upcountry through thepipeline, making the oil supply chain more efficient and safer.
Based on current freight charges of Rs5.2 per liter (road transport), thedispatching of Mogas through pipeline will reduce the cost of petrol by upto Rs2 per liter, the company said of the project, a joint venture betweenPARCO (51pc share), Shell (26pc), PSO (12pc) and Total (11pc).
Briefing the visitors about terminal’s day to day operations and Shell’sroad safety standards for transportation of hydrocarbons, the officialssaid currently the entire supply of Mogas is carried through oil tankers byroad, which is not a safe mode and adds to the cost.
Pakistan’s current fleet of oil tankers comprises 11,198. Of these, anoverwhelming majority or 8000 oil tankers are not compliant with Oil andGas Regulatory Authority (OGRA)’s safety standards, which a big safetyhazard.
Railway network is mainly used for furnace oil, and there is lack ofwaterways and pipeline networks, which is why is why oil marketingcompanies depend on road transportation for supplying Mogas to North, whichis the largest market of oil products in the country.
Currently, road transport accounts for 59 per cent of the cumulativemovement of petroleum, oil and lubricant products, pipeline’s share is 37.7per cent and use of railways for refined products stand at 3.6 per cent.The multi-grade pipeline will, therefore, reduce OMC’ dependence on roadtransport and improve the supply chain by bringing cost efficiencies andswift delivery of the product.