ISLAMABAD – Minister for Energy Omar Ayub Khan said the process of hiringtechnical experts for setting up an oil refinery at the Gwadar deepseaport, an ultimate destination of China Pakistan Economic Corridor(CPEC), had been started and would be completed in next three months.
“The refinery, having 250,000 to 300,000 barrels per day capacity, willhelp Pakistan cut its annual crude oil import bill by around $3 billion,”he said in a recent interview with Arab News.
He said this was the first phase of Saudi investment in Pakistan “and assoon as they will start achieving targets, another phase of investmentwould start.”
Omar Ayub said work had commenced on $14.5 billion energy and petroleumprojects in collaboration with Saudi Arabia.
The minister said that Saudi investment would help Pakistan achieve itstarget of shifting 30 percent of its energy needs to the renewable energysector by 2030.
“In the power sector, Saudis are helping us install 500 megawatts renewableenergy projects worth $4.5 billion in Balochistan and a $10 billion megaoil refinery in Gwadar, which are part of the $20 billion investmentannounced during Saudi Crown Prince Muhammad bin Salman’s visit to Pakistanearlier this year,” the minister said.
Currently, only about 5 to 6 percent of the power to national grid comesfrom renewable energy, according to the country’s Alternate EnergyDevelopment Board (AEDB).
“Studies have been carried out by Saudi company Aqua Power, PakistaniNational Transmission and Despatch Company (NTDC) and other leadingcompanies to look into hybrid or solar projects. This will be a total $4.5billion investment,” he added.
During a visit to Pakistan in February this year by Saudi Crown PrinceMohammed bin Salman, the two countries signed short, mid and long-terminvestment agreements worth over $20 billion, including for energy andpetroleum projects.
Short-term projects signed in February include two Regasified LiquefiedNatural Gas plants for $4 billion, a $2 billion investment by Saudi powerproducing company ACWA Power in Pakistan’s renewable energy sector and a $1billion Saudi Fund for Pakistan.
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Mid-term projects include $1 billion each for petrochemical complex, foodand agricultural projects. The long-term investments are $10 billion forthe construction of the multi-billion-dollar Saudi Aramco oil refinery inGwadar and $2 billion for the minerals sector.
The minister said the power projects, which were in the pipeline, alsoincluded a solar plant of 200-megawatt at the Habibullah coastal powerstation in Balochistan and a 100-megawatt plant each in three otherdistricts of the province.
“Alternative Energy Development Board cleared the draft renewable energypolicy last week, in which we are taking renewable energy from the current1,500 megawatts to approximately, 8000 megawatts by the end of 2025, andthen to 20,000 megawatts by 2030,” he said.
Omar Ayub said Saudi Arabia and Pakistan were also collaborating to exploreminerals in the Balochistan province to promote indigenous exploration andproduction activities in both the oil and gas sectors.
“We would be auctioning approximately 40 blocks in the exploration andproduction sphere in Pakistan. In this process, we welcome Saudi companiesto participate in upstream exploration activities,” he said.
“Aramco is already working in the downstream exploration activities inPakistan and we would welcome more Saudi companies to come in Pakistan forinvestment, whether it is upstream, middle stream or downstream.”
He also welcomed Saudi participation in the CPEC energy and infrastructuredevelopment projects.
“It is a good opportunity for Saudis as well as other Middle Easterncompanies to invest in Pakistan as it is next door to a big market likeChina,” the minister said.
