As per sources, Pakistan State Oil (PSO) is planning to develop an oil refinery in Pakistan worth $8 billion, in collaboration with Power China.
As per an official soon an agreement will be signed between the two companies. But the details and finer points of the agreement are yet unknown.
It is pertinent to mention here that the Prime Minister Shahid Khaqqan Abbasi visited China recently. He witnessed the agreement and signing of the memorandum of understanding (MoU) between the two companies, PSO and Power China. The MoU was signed for the development of deep conversion oil refinery and the placement of crude oil refinery.
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It is expected that the refinery will have a capacity of 250,000 to 300,000 bpd/day. The design of the pipeline is such that it will avoid accidents and ensure a smooth & secure supply to the installed refineries.
The aim of the project as per the officials is to continuously supply crude oil in different areas of Pakistan including Punjab and KPK.
Presently Pakistan has five refineries that jointly have a capacity of 404,000 barrels per day. At the moment we don’t know when this project between PSO and Power China will start. But we do know that it will be based upon latest modern technologies.
The refineries in Pakistan produce 25 to 40 percent furnace oil from product mix. When the government decided to close the power plants running on furnace oil in November 2017, these refineries suffered a major setback.
Pakistan is investing more in cheap power generation sources like coal and LNG power plants instead of relying solely on furnace oil. But this mega project between PSO and Power China will bring further betterment and development in the oil sector of Pakistan.