In a major positive development, Pakistan has successfully joined the club of countries with single point mooring (SPM) facilities in the deep sea to transport crude oil through a pipeline to the refineries set up along the coast.
Byco has completed the first year of successful SPM operations, which can save millions of dollars in demurrages due to quick disposal of imported crude oil.
During a visit on Wednesday to the SPM facility set up by Byco refinery, representatives of the company told journalists that the company had laid a 15km pipeline at the seabed from the SPM to pump crude oil to its refinery.
“We celebrate the completion of the first year of successful SPM operations. The first vessel, MT Arietis, was moored to the SPM on December 26, 2012 with a cargo of 67,146 tons,” Imran Farooki, CEO of Byco Terminals Pakistan Limited (BTPL) told the journalists.
“The SPM’s single largest cargo to date came on vessel MT Quetta with a quantity of 79,000 tons. Thanks to the entire Byco Terminals Pakistan team for their untiring efforts in making this project a success,” he said.
Farooki said the SPM was expected to start commercial operations in January as a Turkish-based firm had given certification to tackle the issues arising out of an oil spill. The certificate has been submitted to the Oil and Gas Regulatory Authority (Ogra).
The media people were taken to the Arabian Sea where an oil vessel was anchored about 65 km offshore, with 65,000 tons of crude oil, near the floating buoy.
The oil was being transported from the oil vessel to Byco’s oil refining complex established at the shores in Hub, Balochistan through a 28-inch pipeline, 26 metres under the sea.
Crude oil procurement head Syed Rizwan Ali Gillani gave a comprehensive briefing about this unique technology for import and export of petroleum products without getting huge oil vessels anchored at the port.
He said the SPM was not a new technology as many other countries were using it. However, this is the first such facility in Pakistan.
In reply to a question, he said the location of the SPM would curtail the distance from Middle Eastern ports by 100 nautical miles per trip, leading to further savings in freight cost.
This has been introduced for the first time in Pakistan not by a public sector refinery, but purely by private sector’s refinery Byco without involvement of guarantees.
The pumping capacity of the SPM is more than 2,000 tons per hour. “SPM is an all-weather facility, which is the cheapest entry point for liquid cargo into Pakistan,” he said, adding the SPM is equipped with night navigation facility.
Byco refinery is currently refining 35,000 tons of crude oil a day. When its new refinery starts commercial operation, its refining capacity will increase to 155,000 tons per day, more than the capacity of Parco, which stands at 90,000 tons per day.
Published in The Express Tribune, December 27th, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (12)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
@khan: Bro! India had more time on hand in 1971. It just used the opportunity to break-us appart & sow the seeds of hatred in the fresh cracked soil.
Then ☆BANG★! The next morning...when she woke-up! The scenery was changed and all colorfull dreams it had just dissapeared.
Hopefully here at ET comments ...it WksUp & smell the coffee.
@Saad: nope.wrong no real enmity between punjab and sarhad. rergarding sindh too much mixed population in karachi which represents nearly 40% of sindh and balochistan too little population with lots of pushtoons ethnic group too. essentially only why pakistan can break is total economical failure and collapse. so indians should try that.
Byco refinery is currently refining 35,000 tons of crude oil a day. When its new refinery starts commercial operation, its refining capacity will increase to 155,000 tons per day, more than the capacity of Parco, which stands at 90,000 tons per day. . The Figures should be 35,000 bbls a day, 155,000 bbls per day and 90,000 bbls per day. . Cheers
My first comment went astray, so i'll try again in a milder tone : The SPM is completely exposed to the Arabian sea and with a May to September monsoon season, the claim of a year round operation seems highly doubtful. I have some understanding of what is being conveyed and all I say is that a bit of investigative reporting would be in order, especially for an entity like ET, so that a balanced more factual picture is painted.
@Baloch: Are you nuts? Exploitation of resources? This is imported oil paid for by the buyer. Secondly, Pakistan's territorial waters are federal territory and do not belong to any province. And for the record, this operation has been going on for a year which means the majority of Baloch, including me, accept it.
@Baloch: As much as i want to help the Baloch and see them prosper (they truly deserve it), after having worked in the region extensively, I don;t think the Baloch want to help themselves. Much easier to sit and blame everyone as opposed to actually working and failing/succeeding. Everything in Balochistan (in terms on business) is a prisoner to a demented feudal + bureaucratic mindset/mess.
@Baloch, I think that Pakistan has run its course now and that it will now be harder to keep these four provinces together in any sort of union. Better to call it quits now before things get any uglier.
More exploitation of Balochi resources by the Punjan/Pakistan occupiers. This refinery and SPM on Balochi territory to satisfy punjabi needs will never be accepted by the Baloach people.
@Random Passerby: Please read correctly it's the certification for the capability to handle "Future Issues" of possible oil spill. Not that there is an oil spill there already. Still the job by the hard working team on planning ans laying out this pipeline is commendable.
@Random Passerby: "Farooki said the SPM was expected to start commercial operations in January as a Turkish-based firm had given certification to tackle the issues arising out of an oil spill"
Read the whole thing, there is no oil spill but just a precautionary measure certification in case there is an oil spill in future.
I hope they take good care of the pipeline though, the area around Hub is rich with sea life and we certainly cannot afford an oil spill in that area.
SPM is a great stuff.. The credit here must also go to Coastal Refinery Ltd, who conceived the idea and went on to have it in working condition.... They are yet to be paid the money for this...so much for all the hullabaloo about it....Ask the Banks who financed it.... And the other side of story will come out....
How big is this spill and why have we not heard about it in the news?