ISLAMABAD: A Chinese state-owned entity has expressed interest in building an up-country deep conversion oil refinery at a cost of $7-8 billion in Pakistan.
State-owned Power China International Group Limited (PCGIL) in partnership with two other Chinese firms namely CNPC and SINOPEC and investment from Gulf countries want to establish a mega oil refinery under Public Private Partnership (PPP) model, reported Business Recorder.
According to sources, public-sector oil and gas companies like Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Government Holding Private Limited and Pakistan State Oil (PSO) could be invited to participate in the project as equity holders.
The share of equity holdings would be decided by each entity’s board of directors after conducting feasibility of this project.
This project is estimated to cost $7 to $8 billion, which would be ascertained after the finalization of the feasibility report.
A non-binding memorandum of understanding (MoU) was signed at the Boao Forum in China, in presence of the Prime Minister Shahid Khaqan Abbasi who was on a visit to the country from April 8th-11th.
This agreement was reached between PSO and PCGIL, who would work in conjunction to carry out a feasibility study for determining the financial and economic viability of this project.
The feasibility cost will be paid by PCGIL.