Saudi Aramco to conduct feasibility study of Gwadar oil refinery, Pakistan’s commerce minister says

Abdul Razak Dawood, advisor to Prime Minister for Commerce, Textile, Investment, Industries and Production, is meeting with members of Saudi delegation in Islamabad. (AN photo)
Updated 04 October 2018
0

Saudi Aramco to conduct feasibility study of Gwadar oil refinery, Pakistan’s commerce minister says

  • Final decision will be made by another senior Saudi delegation
  • Free Trade Agreement (FTA) between Pakistan and Saudi Arabia will be discussed with senior visiting delegation

KARACHI: Saudi Arabia will soon start a feasibility study of the proposed multibillion-dollar oil refinery slated to be set up in Gwadar, a port city in Pakistan's Baluchistan province, Commerce Minister Abdul Razak Dawood told Arab News.

“A Memorandum of Understanding will be signed shortly,” he said. 

“The members of (the Saudi) delegation visited Gwadar on Tuesday and they were satisfied with the arrangements they witnessed. The final decision will be made by another delegation at the most senior level,” Dawood said.

The six-member delegation from Saudi Arabia arrived in Pakistan on Sunday to explore investment opportunities in the country.

The delegation was briefed about the China Pakistan Economic Corridor (CPEC) projects linked to Gwadar port and other areas.

"The delegation showed interest in taking part in the bidding process for two power plants in Punjab, setting up a desalination plant, and wind- and solar-power plants in Balochistan,” Dawood explained.

Pakistan has also offered to strike a Free Trade Agreement (FTA) deal with the Kingdom, Dawood confirmed, adding that no firm decision had been taken as negotiations for such a deal would be carried out at a “very senior level.”

Pakistan’s commerce minister said that a delegation of senior Saudi officials will visit Pakistan soon in order to finalize the agreements. 

“The refining capacity of crude oil in Pakistan has declined over time. That is why Saudi Arabia has agreed to develop a refinery. They will import crude and refine it here,” Dawood added.

He said the feasibility study would be conducted by Saudi Aramco, and that the company would determine the exact cost of the refinery. “They have the expertise to undertake such studies — expertise that we lack," he clarified.

However, local media reported that Islamabad was expecting the refinery — slated to have a production capacity of 500,000 barrels per day and storage for up to 3 million tonnes — to cost around $9 billion.

Pakistan currently meets 85 percent of its oil requirement through imports. During the fiscal year 2017, the transport sector was responsible for 57 percent of oil consumption, while the power sector consumed 33 percent.

The commerce minister said that the work done by the preliminary delegation and local authorities was considerable, particularly given the short time span of the visit.

The flurry of action between Saudi Arabia and Pakistan comes after the newly elected Prime Minister Imran Khan chose Saudi Arabia for his first official overseas visit.

Following Khan’s visit to the Kingdom, an adviser to Saudi Crown Prince Mohammad bin Salman, Ahmad Agil Al-Khateeb, visited Islamabad on September 27.

Last week, Pakistan’s Information Minister, Fawad Chaudhry, announced that Pakistan and Saudi Arabia have signed “three grant agreements” for major investment in Pakistan, following a formal invitation by Pakistan to Saudi Arabia to become a third partner in CPEC projects.


China calls for de-escalation of tensions in South Asia

Updated 19 March 2019
0

China calls for de-escalation of tensions in South Asia

  • FM Qureshi is visiting Beijing to attend the strategic dialogue between the two countries
  • China applauded Pakistan’s counterterrorism efforts

ISLAMABAD: China’s Foreign Minister Wang Yi on Tuesday called for de-escalation of tensions in South Asia and emphasized the need for dialogue to resolve all outstanding dispute in the region, said an official handout circulated by Pakistan’s Ministry of Foreign Affairs on Tuesday.

China’s top diplomat made the statement during his conversation with Foreign Minister Shah Mehmood Qureshi, who is currently visiting Beijing to attend the China-Pakistan Strategic Dialogue.

“The two sides reaffirmed support to each other on all core issues of their national interest,” the handout read. “They underlined that state sovereignty and territorial integrity are cardinal principles of UN Charter and international law.”

Discussing the situation in Afghanistan, both leaders expressed support for the ongoing efforts for peace and reconciliation in that country, reiterating “support for Afghan-owned Afghan-led inclusive peace process and called on all stakeholders in Afghanistan to become part of an intra-Afghan dialogue.”

China and Pakistan also agreed to continue their mutual collaboration and reaffirmed their commitment to the economic corridor between Gwadar and Xinjiang as they pledged to work for the smooth implementation of the project, especially its Special Economic Zones.

“While rejecting the negative propaganda against CPEC, they expressed a strong resolve to safeguard [it] from all kinds of threats,” Pakistan’s official statement said.

The two sides also agreed to increase cooperation against terrorism by strengthening communication and coordination in different areas of importance. “The Chinese side highly appreciated Pakistan’s commitment and efforts to counter terrorism,” the handout read, adding: “Foreign Minister of Pakistan expressed appreciation for Chinese support for Pakistan’s efforts.”