Islamabad: The cabinet has approved the signing of memorandum of understanding (MoU) with Saudi Arabia for setting up a new oil refinery in Gwadar informed the Minister for Petroleum Ghulam Sarwar Khan during a press conference
It would be a government-to-government agreement and a final MoU would be signed on the arrival of Saudi energy minister in Pakistan. The agreement regarding the refinery will be signed between the Pakistan State Oil (PSO) and Saudi oil giant Aramco. Balochistan government will be taken on board regarding the refinery when the agreement is finalized.
“The Saudis have shown their interest in the oil refinery,” he said, adding that the refinery would be set up in Gwadar while cost and its capacity like modalities would be finalized later on.
United Arab Emirates has also shown its interest in another refinery in Pakistan. According to sources one refinery will be constructed in Gwadar district and other in Hub district. Both will have capacity to produce 250,000 barrels of oil per day. Currently Attock Oil Refinery is refining 53,000 barrels of oil per day while National Refinery is producing 65,000 barrels of oil per day.
Five oil refineries, are working in Pakistan, which are producing 13 million barrels of oil per day against the capacity to produce 19 million barrels of oil per day and rest of the oil is imported. Around 45 percent demand of diesel is met through import, whereas local refineries are meeting demand of jet fuel. Pakistan imports 70 percent of motor gasoline and furnace oil and rest are produced locally. Jet fuel, is prepared by local refineries which is essential to meet the defense needs.