Kuwait has decided to undertake a white oil pipeline project in Pakistan for transporting petroleum products from Karachi port to major consumer destinations in Punjab, reported a national daily.
During the recent visit to Kuwait, Pakistani officials had invited Kuwait to set up an oil refinery in Balochistan along with setting up a white oil pipeline. The Kuwaiti delegation will be arriving in Pakistan to discuss the projects.
A white oil pipeline is already run by Pak-Arab Pipeline Company Limited (Papco). The pipeline is responsible for transport of diesel to central regions of Pakistan, which accounts for almost 60% of total petroleum consumption in the country.
Another major source of transportation is the tank lorries, but unfortunately, there have been major reports of theft while transporting oil through these. Approximately $200 million worth of oil is stolen every year in connivance with lorry drivers.
Officials suggest that the white oil pipeline will not only be environment-friendly but will also serve as a safe mode of transport of fuel supply.
Pakistan and Kuwait have already been engaged in setting up an oil refinery in Balochistan. Pakistan has already given a green signal to Kuwait Petroleum Corporation to set up an oil refinery project in Balochistan. The initiative is likely to reduce the need for import of refined petroleum products.
At present, the annual demand for petroleum products in Pakistan stands at around 23 million tons. Of the total volume, 44% of demand is met by domestic refineries whereas 56% is imported. More than two-thirds of the crude processed by local refineries is imported.
The Economic Coordination Committee (ECC) of the cabinet has also permitted import of furnace oil and jet fuel from Kuwait without resorting to competitive bidding.
