Pakistan

UAE refinery to pump $500m into Pakistan

Will set up an oil refining facility preferably in K-P

APP December 10, 2015

Will set up an oil refining facility preferably in K-P. PHOTO: FILE

ISLAMABAD: Al-Motahaden Petroleum Refineries of the United Arab Emirates will invest $500 million in setting up an oil refinery in Pakistan in an attempt to reduce imports and meet the country’s growing energy needs.

The refinery will be set up preferably in Khyber-Pakhtunkhwa (K-P), enhance the country’s refining capacity and help boost economic development.

UAE Sheikh invests $5.4 million in Pakistan-based start-up

In this regard, a memorandum of understanding was signed by Al-Motahaden Petroleum Refineries and the Board of Investment (BoI) on Thursday. BoI Secretary Iftikhar Babar and an official of the UAE refinery inked the agreement.

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, BoI Chairman Miftah Ismail and the UAE ambassador were present at the ceremony.

The refinery would have the capacity to process about 15,000 to 20,000 barrels of oil per day. Al-Motahaden Petroleum Refineries will form a consortium consisting of local and foreign companies to develop the project and make the required foreign direct investment in Pakistan.

Largest oil refinery opened in Hub

The initiative will support Pakistan’s efforts to fulfill its energy requirements and enhance economic development. It will encourage investors to develop such other projects through foreign direct investment and international expertise.

Speaking on the occasion, BoI Chairman Miftah Ismail assured the UAE investors of full assistance and support for getting the required administrative and regulatory approvals.

He said the BoI would assist the company in obtaining consents and permissions for development of the project, including acquisition of land and import of plant and machinery. He expressed the hope that the project would be completed on time.

Published in The Express Tribune, December 11^th, 2015.

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COMMENTS (10)

GKA | 8 years ago | Reply @Sawaiz: @N.S: What Hari Om is saying that 20,000 bbl per day is not profitable. So for the refinery to be profitable higher margins need to be charged from the customer. In India refineries have some tariff protection but thier profitability is more dependent on thier ability to process some of the cheapest (and most diifficult to process ) crudes. Such refineries required size as they need cokers and FCC. 20,000 b/d means the customer has to pay

abdullah | 8 years ago | Reply Finally good policies of PMLN helping pakistan.still far from where the nation should be.bt good we are in the right direction.

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Shakil Ahmed Khan | 8 years ago | Reply @salman: Pakistan does have its own crude oil production and it also export due no capacity to refine that! Setting up refineries across the country is needed and it will not be the first one to be set up in northern Pakistan.

PakPower | 8 years ago | Reply @Hari Om: You need to be taught a lesson in basic supply and demand. You can't compare a domestic market the size of India to that of Pakistan.

Khalid Khan | 8 years ago | Reply Thank's to Allah that the UAE group is investing in a refinery located in KPK iVery very encouraging for the province. A very welcome sign indeed.

N.S | 8 years ago | Reply @Hari Om: This is for the new discovered oil reserves in KPK province. Check the sub heading, largest oil refinery opened in Hub. Byco has a capacity of 120,000 bopd, with a 5-6 mtap capacity. Other refineries like PARCO, National refinery has a capacity in excess of 100,000 bopd. Attock refinery has a capacity of about 50,000 bopd.

Sawaiz | 8 years ago | Reply @hari india had to fulfill the need of 1.3 billion people while pakistan only need to fulfill the needs 180 million people there a huge difference in it!!

Hari Om | 8 years ago | Reply By Indian standards a 20,000 bopd refinery or 0.996 mtpa refinery would be un-economic. Refineries in India typically are reckoned to have to be in the 12-15 mtpa size range to be competitive. It was only the mid 1960’s that refineries in the 1 mtpa range such as Barauni were considered competitive in India.

sabi | 8 years ago | Reply I hope NS will be able to fly the Jumbo jet of economy in next few years.Way to go pmln.

salman | 8 years ago | Reply Whats the use of establishing an oil refinery in KP when we have an established sea port in Karachi ? Crude Oil more likely be coming from Middle east or Iran so the travel cost to the KP refinery will be higher as compare to Sindh.

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