Pakistan biggest trade organization, Federation of Pakistan Chamber of Commerce has agreed upon to become facilitator between government and Chinese companies to install a refinery in the country having capacity of 200,000 bpd, said the an executive of the chamber.
A delegation from Tianchen Engineering Corporation met the officials and the President of Federation of Pakistan Chamber of Commerce Wednesday and envisaged their plan of investment in Pakistan, said Zubair Tufail, president of the Chamber to Platts on Thursday.
“This is a huge investment and Tianchen Engineering along with consortium of Ten Chinese Companies planned to set up a refinery in Pakistan, with an investment cost of $4 billion”, Tufail said.
“We are in talks with the both the provincial governments of Sindh and Baluchistan to acquire lands to set up the refinery, both are interested and whosoever place a better offer for land acquirement, the consortium to finalize plan to set up the refinery unit”, Tufail said.
Pakistan total demand of petroleum products including motor gasoline, high speed diesel and furnace has been around 22 million mtons, of this around 65% met through imports.
In the year ended June 30, 2017, Pakistan imports of motor gasoline reached 4.681 million mtons, high speed around 3.890 million mtons and furnace oil 5.948 million mtons.
“The setting up of the refinery would help reduce the import bill of refined products, reducing burden on the national exchequer,” Tufail said. Beside refinery, the petrochemical complex will facilitate processing of naptha and other allied chemicals, he said.
The country has currently five refiners- Pak Arab Refinery, Byco, National Refinery, Attock Refinery and Pakistan Refinery, with combined refining capacity of nearly 19 million mtons per year.