Pakistan State Oil (PSO) has initiated discussions with Chinese energy conglomerate Sinopec to explore a partnership with Saudi Arabia’s energy giant Aramco for the development of a cutting-edge refinery and petrochemical complex in Pakistan.
Pakistan is also considering incorporating the $10 billion Saudi Aramco refinery project into the China-Pakistan Economic Corridor (CPEC) framework.
Aramco has expressed interest in establishing a crude to-chemical/plastic complex.
This initiative was discussed in a recent meeting of the Special Investment Facilitation Council, led by caretaker Prime Minister Anwaar-ul-Haq Kakar.
Business Recorder reported that during his recent communication with Sinopec Corp’s President Yu Baocai, PSO’s Managing Director and CEO, Syed Muhammad Taha, expressed PSO’s interest in having Sinopec join the ambitious greenfield refinery and petrochemical initiative in Pakistan.
Taha highlighted the project as a golden opportunity for Sinopec to apply its vast expertise and resources in a market poised for substantial growth and potential.
The proposed collaboration between PSO and Saudi Aramco aims to establish a modern refinery and petrochemical complex capable of processing over 300,000 barrels per day.
This venture is expected to produce a variety of premium petroleum products such as gasoline, diesel, and jet fuel, along with petrochemicals.
PSO CEO outlined the incentives provided by the government to enhance the project’s financial viability, including a 20-year tax holiday, a 7.5% deemed duty concession for gasoline and diesel production for 25 years, and tax exemptions on the import of equipment and materials for the project.
He underscored Pakistan’s attractive investment landscape, noting the country’s burgeoning population of over 220 million and its rapidly growing economy.
With energy demand projected to double by 2035, Taha presented a compelling case for Sinopec’s investment and participation in this strategic market.
He praised Sinopec’s proven expertise in refinery and petrochemical projects, its operational excellence, and its strong financial standing as critical to the project’s success.
He invited Sinopec to consider becoming an equity and technical partner in the project, open to discussing various partnership arrangements.
This is good news. Let’s start thinking beyond corruption of Sahrif,Zardari family, incompetence of Imran governance, establishment interference in judicial matters. Try to put the country on the road to progress.
I’m grateful that you shared this great content. That’s exactly what I wanted to see, and I hope you’ll keep writing such great posts in the future.
Really it’s a very good news after a long time, it will strengthen Pakistan’s economy and create jobs for Pakistani Engineers working abroad. I hope to get more update of this project and would love to be it’s part to utilise hydrocarbon and petrochemical refinery experience for my country.
its too early to state at this moment of time, as we are already hearing since long ago, but this never had been seen anything on the ground. we must explore other possibilities to start this project on war footing , as Saudis are less interested in this refinery .
who will provide the crude? 300,000 barrel per day
I hope they will find successful collaborators