Crown Jewel of Energy: Saudi Aramco Explores Gwadar Oil Refinery Feasibility Study
Saudi Aramco, the state-owned oil giant of Saudi Arabia, is set to embark on a comprehensive feasibility assessment for a colossal oil refinery project planned by Pakistan in Gwadar. This endeavor was disclosed by Pakistan's Commerce Advisor, Abdul Razak Dawood, to Arab News.
The publication quoted Dawood, who revealed that a high-ranking Saudi delegation currently in Pakistan will formalize a Memorandum of Understanding (MoU) to initiate the feasibility study for the proposed refinery, to be situated in the port city of Gwadar, located within Balochistan province.
P.c. ProPakistani.PK
Elaborating further, Dawood conveyed that the Saudi delegation visited Gwadar and expressed satisfaction with the preparations they observed. The ultimate decision on this matter, however, will be made by an even higher-level delegation.
It is worth noting that a six-member Saudi delegation has been in Pakistan since Sunday, actively engaging with Pakistani authorities to explore investment prospects in the country.
During their visit, the Saudi delegation was apprised of the projects associated with the China-Pakistan Economic Corridor (CPEC), particularly those linked to Gwadar port and its environs.
Abdul Razak Dawood went on to reveal that the delegation exhibited keen interest in participating in the bidding process for two power plants in Punjab, the establishment of a desalination facility, and the development of wind and solar power projects in Balochistan.
Furthermore, Pakistan extended an offer to negotiate a Free Trade Agreement (FTA) with the Kingdom, which the Pakistani Commerce Minister disclosed would be solidified by a subsequent delegation of high-ranking Saudi officials.
Dawood underlined that Pakistan's domestic crude oil refining capacity has diminished over time, prompting the Saudis to collaborate on this refinery project. Their plan involves importing crude oil and conducting the refining process within Pakistan.
The feasibility study will be entrusted to Saudi Aramco, leveraging their expertise to determine the precise cost of the refinery. Dawood emphasized that Pakistan lacks the necessary expertise for such evaluations.
Meanwhile, local media sources reported that Islamabad envisions a refinery with a capacity of 500,000 barrels per day, estimated to cost approximately $9 billion, alongside an oil storage facility capable of holding up to 3 million tonnes of oil.