Chinese group unveils multi-billion dollar energy vision for Pakistan with refinery, LNG and oil exploration plans

A Chinese energy company has pitched an expansive investment plan for Pakistan that stretches from oil and gas exploration to refinery modernisation, energy equipment manufacturing and the development of large-scale coastal energy infrastructure, as Islamabad seeks fresh foreign investment to strengthen its energy sector.

The proposals were presented by Shandong Xinxu Group Corporation Chairman Hou Jianxin during talks with Petroleum Minister Ali Pervaiz Malik on Thursday, the Petroleum Division said in a statement.

Among the key proposals is support for Pakistan's upstream oil and gas industry through field optimisation, drilling services and production enhancement aimed at increasing domestic hydrocarbon output.

The company also proposed upgrading the country's refining capacity by installing a Fluid Catalytic Cracking (FCC) unit, enabling refineries to convert furnace oil into higher-value petroleum products and improve the overall product mix.

Looking beyond conventional oil and gas, the Chinese firm outlined plans to establish an energy equipment manufacturing facility in Pakistan, targeting both local demand and export opportunities across Middle Eastern markets.

Its proposal further covers offshore oil exploration and development, lead mining, construction of a sulphur processing plant, and the creation of integrated energy cities along Pakistan's coastline incorporating LNG infrastructure, petroleum storage terminals and petrochemical complexes.

Hou said the company was seeking a long-term strategic partnership covering Pakistan's entire energy value chain, reflecting its interest in expanding cooperation across multiple segments of the country's energy industry.

Responding to the proposals, Petroleum Minister Ali Pervaiz Malik said the government was reviewing Pakistan's energy landscape to improve energy security, attract greater foreign investment and promote higher value addition across the sector.

He assured the delegation that the government would facilitate commercially viable investment projects and instructed the Petroleum Division to appoint dedicated focal persons for each proposal to ensure prompt coordination and follow-up.

The minister also noted that representatives of Shandong Xinxu Group had previously met Prime Minister Shehbaz Sharif during his visit to China, adding that enhanced collaboration between the two countries could play an important role in Pakistan's economic development and long-term energy transformation.