SPEC advances $4.5bn hub refinery project, seeks faster regulatory clearances

SPEC Refinery Pvt Ltd is pushing ahead with plans to establish a $4.5 billion deep-conversion refinery in Hub, Balochistan, as the company seeks government support to expedite pending regulatory approvals needed for the project's execution.

The request was made during a meeting between Commerce Minister Jam Kamal Khan and a delegation headed by SPEC Refinery Chairman Zafar Sheikh, according to an official statement issued on Wednesday.

The proposed facility, described as Pakistan’s first deep-conversion greenfield refinery, is expected to strengthen the country’s energy security by increasing domestic refining capacity and reducing reliance on imported petroleum products.

Company officials informed the minister that groundwork on the project has already started, while implementation plans are being finalised. They said the refinery would be equipped with advanced processing technology capable of handling multiple crude oil grades from international markets and producing a higher share of value-added petroleum products.

The delegation also called for effective implementation of the Greenfield Refinery Policy and early issuance of the remaining approvals from the Federal Board of Revenue (FBR), arguing that timely regulatory support would be critical for keeping the project on schedule.

Officials said the investment could also serve as a foundation for the development of downstream petrochemical industries in Pakistan. The company shared plans for future petrochemical facilities that would manufacture industrial feedstocks and other value-added products for local industries and export markets.

Zafar Sheikh said the project is expected to generate around 2,000 direct and indirect employment opportunities during construction and after commercial operations begin. He added that the investment would contribute to technology transfer, workforce training and broader industrial growth in Balochistan.

Speaking on the occasion, Jam Kamal said Pakistan offers significant opportunities for investment in refining, petrochemicals, logistics and manufacturing due to its strategic location connecting South Asia, Central Asia, the Middle East and western China.

He said large-scale projects such as the Hub refinery could help enhance industrial capacity, support import substitution, strengthen energy security and attract long-term domestic and foreign investment.

The minister reiterated the government's commitment to facilitating investments that support economic growth, industrial modernisation and export expansion.

Both sides agreed to continue engagement to help accelerate industrial investment and support the development of Pakistan's energy and manufacturing sectors.