KARACHI: Pakistan and China have agreed to jointly device a strategy to enhance cooperation in oil and gas sector where Beijing would provide technical expertise under China Pakistan Economic Corridor (CPEC), officials say.

Islamabad and Beijing have decided to explore the opportunities in petroleum sector during the 9th meeting of joint cooperation committee of CPEC, which was co-chaired by Pakistan’s Federal Minister for Planning and Development Makhdum Khusro Bakhtyar and Vice Chairman National Development & Reform Commission (NDRC) Ning Jizhe last week in Pakistani capital.

“Both countries have agreed to provide guidelines for the development of Pakistan’s oil and gas sector, both in upstream and downstream which needs foreign expertise and financing,” a top official of the refining sector who attended the meeting told Arab News on the condition of anonymity.

China is investing around $70 billion under CPEC project, a framework of regional connectivity and major component of Belt and Road initiative (BRI).

In the phase of CPEC major focus would be on industrialization and construction of Special Economic Zones for specialized industries.

Beijing and Islamabad also decided to expedite work on the four energy related projects including feasibility of South North Gas pipeline for development of 1200 MMCFD pipeline from Karachi to Lahore, up-gradation of Pakistan Refinery, establishment of a plant to convert coal into diesel in Thar and coal gasification in Thar.

Analysts say that the Chinese cooperation in selected projects would help Pakistan to boost exploration in the northern part of the country.

“This will help Pakistan to enhance exploration in Khyber Pakhtunkhwa (KP) province that will reduce dependence on the import of costly crude oil. The refinery upgradation would also increase refining capacity in the country’s north,” Tahir Alam General Secretary, Petroleum Club of Pakistan, commented.

Islamabad was also seeking investment from China for exploration activities of Mari Petroleum and Khyber Pakhtunkhwa Oil & Gas Company Limited KPOGCL which have blocks on CPEC, official said.

Petroleum experts say that the Sino-Pak cooperation in oil and gas sector will benefit Pakistan due to China’s global footprint.

“China has footprints all over the world as China National Petroleum CNP is active in many countries,” Masood Abdali, Texas based energy expert and former Business development manager of Weatherford, Saudi Arabia and Bahrain, told Arab News.

Abdali believes that though technically Chinese government may not help Pakistan to large extent but its cash-rich companies can help Pakistan.

“The CNP is the second largest cash-rich company after Aramco. The major benefit would be their heavy investment in Pakistan. They can bring in oil rigs and other technical equipment to Pakistan,” Abdali noted.