In a groundbreaking move, four Pakistani state-owned petroleum companies have joined forces with Saudi Arabia to embark on an ambitious endeavor – constructing Pakistan’s largest oil refinery at the strategic Gwadar Port. The memorandum of understanding (MoU) was signed, sealing an investment of a staggering $10 billion for the state-of-the-art facility, with a remarkable production capacity of 300,000 barrels per day.
The dynamic quartet of Oil and Gas Development Company (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum (PPL), and Government Holdings Private (GHPL) will be integral in this historic project, taking an active role through equity participation.
Prime Minister Shehbaz Sharif’s government is moving swiftly to finalize negotiations with Saudi Arabia’s industry giant Aramco, aiming to complete the initial paperwork before their tenure concludes in two weeks.
To facilitate the Saudi investment, the government recently passed a new policy offering attractive incentives, including a customs duty of only 7.5% for 25 years on petrol and diesel produced from the refinery. This move is set to bolster economic growth and strengthen the energy landscape of Pakistan.
The visionary complex will encompass essential components like marine infrastructure, a petrochemical complex, and storage facilities, revolutionizing Pakistan’s position in the global oil and gas arena.