Reuters reported that Crude oil refining capacity in the country would reach 713,506 barrels from the existing 248,506 barrels per day after the establishment of 3 more refineries.

The 3 new refineries, to be established in the country are Khalifa Coastal Refinery with a production capacity of 250,000 barrels per day, Bosicor Oil Pakistan Limited with a capacity of 115,000 barrels per day and Trans Asia Refinery with 100,000 barrels.

Trans Asia Refinery would be established at Port Qasim while the other 2 refineries would be established in Balochistan.

Pakistan plans to establish oil and gas nucleus at Khalifa point in Hub. The ministry of petroleum and natural resources has also decided to establish a floating terminal at Khalifa point, where large oil tankers could anchor for loading or offloading oil.

Mr Syed Naveed Qamar Pakistan’s minister for petroleum and natural resources said that the 7 refineries operating in the country have the capacity to refine 248,506 barrels crude oil per day.

This includes Pakistan, Arab Refinery Limited 100,000 barrels per day, National Refinery Limited 62,050 barrels per day, Pakistan refinery Limited 47,110 barrels per day, Attock refinery Limited 42,000 barrels per day, Bosicor Refinery Limited 30,000 barrels per day, Dhodak refinery Limited 2,500 barrels per day and Enar Petrotech Services Limited 2,646 barrels per day. The incentives given by the government to attract investment in the mid stream petroleum sectors include linking of Singapore mean FOB spot price parity formula for the new refineries.

The refineries are free to sell their products to any oil marketing company and they are even allowed to establish their own OMC. Besides no prior permission was required for setting up of new refinery and the government has granted 20 years tax holiday to any large refinery with a minimum of 100,000 barrels per day capacity at the coastal belt of Balochistan.

(Sourced from Reuters)