ISLAMABAD – Saudi Arabia is set to become “an important partner ofChina-Pakistan Economic Corridor (CPEC)”, a Pakistani minister said overthe weekend as Riyadh confirmed that the Gulf kingdom will build a megarefinery in Pakistan’s deepwater port of Gwadar, which is being developedwith funding from China, CGTN has reported.
An agreement for the 10 billion U.S. dollar refinery will be signed by boththe governments during Saudi Crown Prince Mohammed bin Salman’s forthcomingvisit to Islamabad in February, Saudi Energy Minister Khalid al-Falih saidon Saturday after leading a delegation to the site of the proposed refineryin Gwadar in Pakistan’s southwestern Balochistan province.
“Saudi Arabia wants to make Pakistan’s economic development stable throughestablishing an oil refinery and partnership with Pakistan in theChina-Pakistan Economic Corridor,” Falih, who is also chairman of the Boardof Saudi Aramco said, adding that Saudi Arabia would also invest in othersectors. The two countries discussed cooperation in refining,petrochemicals, mining and renewable energy, the Saudi news agency SPAreported.
The Saudi delegation was received by Pakistan’s Petroleum Minister GhulamSarwar Khan, Port and Shipping Minister Syed Ali Haider Zaidi andBalochistan Information Minister Zahoor Ahmed Buledi, Riyadh-based ArabNews English daily reported.
2/2 Pakistani Petroleum Minister Ghulam Sarwar Khan (second from left) andBalochistan Information Minister Zahoor Ahmed Buledi (second from right)welcome Saudi Energy Minister Khalid al-Falih (third from left) in Gwadar,Pakistan, on January 12, 2019. /Photo courtesy Voice of Gwadar
1/2 A Saudi delegation led by Energy Minister Khalid al-Falih hold talkswith their Pakistani counterparts led by Petroleum Minister Ghulam SarwarKhan in Gwadar, Pakistan, on January 12, 2019. /Photo courtesy BehramBaloch, Gwadar
2/2 Pakistani Petroleum Minister Ghulam Sarwar Khan (second from left) andBalochistan Information Minister Zahoor Ahmed Buledi (second from right)welcome Saudi Energy Minister Khalid al-Falih (third from left) in Gwadar,Pakistan, on January 12, 2019. /Photo courtesy Voice of Gwadar
1/2 A Saudi delegation led by Energy Minister Khalid al-Falih hold talkswith their Pakistani counterparts led by Petroleum Minister Ghulam SarwarKhan in Gwadar, Pakistan, on January 12, 2019. /Photo courtesy BehramBaloch, Gwadar
*Analysis: Saudi-built mega oil city near Gwadar port to complement China’sBRI*link
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“With setting up of an oil refinery in Gwadar, Saudi Arabia will become animportant partner in CPEC,” Khan said, adding that his government hasalready given the approval for the memorandum of understanding (MoU) to besigned next month during Prince Mohammed’s visit.
“This would be the biggest investment of Saudi Arabia in Pakistan,” Khansaid.
The Pakistani petroleum minister said that the project would not only proveto be a milestone in the development of Pakistan but also write a newhistory of prosperity and economic development in the entire region.
The visiting Saudi delegation was briefed by the chairman of GwadarDevelopment Authority, Dostain Jamaldini, about the development of deep seaport, which is being constructed with the help of China, and is amongCPEC’s key destination.
Beijing has pledged 60 billion U.S. dollars to CPEC, the flagship projectof Beijing’s Belt and Road Initiative (BRI). The corridor project includesbuilding a network of major highways, railways, ports and power stations totransform Pakistan into a major overland route linking western China to theoil-rich Persian Gulf and beyond.
Meanwhile, Saudi Arabia has assured its support for the BRI as the Gulfkingdom seeks to diversify its economy from a largely oil-based modelthrough collaboration and foreign investments. China’s State Councilor andForeign Minister Wang Yi, while hosting his Saudi counterpart Adel binAhmed al Jubeir in Beijing last July, called for “deeper alignment” betweenBeijing’s BRI and Riyadh’s “Vision 2030” development strategies.
