Pakistan is poised to sign a significant memorandum of understanding (MoU) with China concerning a new crude-to-petrochemical refinery project, during Prime Minister Shehbaz Sharif’s visit to Beijing in June.
This pivotal agreement is set to include collaborations with major entities such as Pakistan State Oil, Chinese oil giant Sinopec, and Saudi Aramco.
As per reports, officials involved in the project have highlighted that an initial joint study will be conducted by the parties to evaluate the economic viability and benefits of the refinery, which is crucial for deciding future investments and the scale of the project. The study’s findings will be instrumental in determining the project’s final parameters.
Saudi Aramco, known for its extensive petrochemical expertise, is particularly interested in the outcome of this study, as it will influence its decision on whether to invest in the petrochemical or a green refinery option.
The Kingdom of Saudi Arabia has also shown interest in ensuring that Sinopec is awarded the engineering, procurement, and construction contract for the project, reinforcing the Chinese company’s prominent role.
Sinopec, which already has a substantial presence in Saudi Arabia through various engineering and exploration projects, is well-regarded for its quality of service and has built a strong reputation amongst its clients and the broader Saudi community.
The proposed design of the refinery suggests a dual focus, with 70% of its capacity dedicated to refining petroleum products and the remaining 30% to producing chemical products. This strategic distribution aligns with the growing demand for both energy and chemical products in the region.
