Summary Pakistan plans to expand petroleum storage as Saudi Arabia may invest $10 billion in Gwadar refinery, with Aramco and local firms partnering for a 400,000 barrel capacity project.
ISLAMABAD (Web Desk) - Pakistan has decided to expand its petroleum storage capacity, while a major investment is expected from Saudi Arabia for the establishment of an oil refinery in Gwadar.
Sources in the Ministry of Petroleum indicate that Saudi Arabia is likely to invest around $10 billion in the Gwadar oil refinery project.
The plan involves Saudi Aramco partnering with Pakistani companies to set up the refinery, with 60 percent investment expected from Saudi Arabia and 40 percent from local firms.
According to sources, the project includes participation from Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL).
The proposed refinery is expected to have a production capacity of up to 400,000 barrels per day.
To facilitate the investment, a proposal is under consideration to grant a 20-year tax exemption on imported machinery required for the project, aiming to attract and secure long-term foreign investment in Pakistan’s energy sector.
