Saudi Arabia is investing $11 billion in a state-of-the-art oil refinery and petrochemical complex in Gwadar. This investment will open new doors for Pakistan in the energy sector, give a boost to Pakistan’s economy and allow it to attain economic independence in the petroleum sector.
A Memoranda of Understanding (MoU) was signed between the Petroleum Minister Ghulam Sarwar Khan and his Saudi counterpart.
They will set up a $10 billion oil refinery and a $1 billion petrochemical complex in Gwadar. Two Re-gasified Liquefied Petroleum Gas (RLNG) plants will be installed that will have an estimated cost of $4 billion. In mineral development sector $2 billion investment will be done.
Ghulam Sarwar Khan said, “The petrochemical complex and refinery will help bring down the country’s oil import bill by $ 1.2 billion annually.”
The annual oil consumption of Pakistan is almost 26 million tons. Adding, “While 50 percent of crude oil is imported to meet the energy needs.”
Per day the official revealed that the refinery will have the capacity of 200,000 to 300,000 barrels of oil. A POL by-product will be developed by the petrochemical complex at the Gwadar city.
Official said, “Currently, oil vessels take 40 days to reach China, while through Pakistan the oil supply will reach China within seven days.”
Responding to a question the official said that the government is working hard to upgrade its present oil refineries and developing new deep conversion facilities.