Largest ever mega project in history of Pakistan worth $10 billion in offing

Largest ever mega project in history of Pakistan worth $10 billion in offing

Pakistan State Oil (PSO) is currently engaged in discussions with Bank of China/Sinopec regarding the establishment of either an oil refinery or petrochemical refinery, involving an investment exceeding $10 billion. These insights have been provided by well-informed sources to Business Recorder.

The sources further revealed that the Secretary of Petroleum recently provided updates to the Executive Committee of the Special Initiative on Foreign Currency Accounts (SIFC) about discussions with Saudi counterparts and PSO's ongoing negotiations with Bank of China/Sinopec. It is anticipated that further progress will be made during the forthcoming visit of the caretaker Prime Minister, Anwar-ul-Haq Kakar, to China.

Additionally, the SIFC has issued directives to various government officials, including the Secretary of Petroleum, Secretary of Finance, Secretary of Law and Justice, Chairman of the Federal Board of Revenue (FBR), and Chairman of the Oil and Gas Regulatory Authority (OGRA). These directives emphasize the finalization of the Host Government Agreement (HGA) for the TAPI pipeline within agreed timelines and the resolution of pending matters through consensus among relevant departments.

Furthermore, the Secretary of Foreign Affairs, Secretary of Petroleum, and Secretary of Planning have been instructed to engage in discussions regarding the Pakstream gas pipeline project within a Working Group, with updates to be shared with the Executive Committee of the SIFC.

OGRA has been designated as the lead regulator responsible for formulating a plan for the provision of virtual LNG, in collaboration with the Petroleum Division. This includes the finalization of codal formalities for the issuance of No Objection Certificates (NOCs).

The Minister for Maritime Affairs (MoMA), Secretary of Petroleum, and Chairman of OGRA have received directives to create an Action Plan aimed at fully utilizing and optimizing existing LNG terminals for the import of maximum LNG, preferably in a business-to-business (B2B) mode. The goal is to secure additional LNG cargoes before the arrival of winter in 2023.