Petroleum ministry contemplating floating tenders for building of oil pipeline

Islamabad: The tragic oil tanker incident which took place in Ahmedpur East last month has made the petroleum ministry to consider revamping the overall process of transporting fuel across the country. The Ministry of Petroleum and Natural Resources is considering the idea of floating tenders to ask companies for fuel transportation purposes domestically.

This development comes amidst the refusal of Pak Arab Refinery (PARCO) to lay pipelines for fuel transportation purposes which it deemed economically unviable because of a lack of volume. The company was originally given the option of laying the oil pipeline from Machike to Taru Jabba, which it had refused.

Parco had shown a willingness to construct the pipeline from Machike to Kharian provided if the required volume was available, the Ministry of Petroleum and Natural Resources was informed. After this, Shahid Khaqan Abbasi Minister for Petroleum and Natural Resources consulted the officials if it was possible to float out tenders for the building of the pipeline.

If it materializes, three separate tenders will be required for the building of the oil pipeline from Machike to Chak Pirana, Chak-Pirana to Sihala and Sihala to Taru Jabba.

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