Petrochemical complex to result in savings of $1.2bln per annum in import substitution: Minister

February 15, 2019 (MLN): Ten MoUs including a $10 billion Oil refinery and petrochemical complex are going to be signed with the Saudi Government during the visit of Saudi Crown Prince, Muhammad Bin Salman to Pakistan.

This was stated by Ghulam Sarwar Khan, Federal Minister for Petroleum on Friday, who also said that Saudi side has expressed strong interest in exploring investment opportunities in Pakistan’s Petrochemical sector which was termed as a ‘game changer’ and would result in savings of $ 1.2 billion per annum in import substitution.

The Saudi side has indicated that the capacity of proposed oil refinery will be between 250,000-300,000 bpd (11-13 million tons per annum), whereas the cost of the refinery will be determined after the feasibility study. Initially both sides will study the feasibility of the proposed project after signing of the MOU.

The Federal Minister said that Saudi technical teams have visited Gwadar and Karachi. He further added that the mega oil refinery will result in added benefits like reliability in fuel supply, import substitution and exports. It will enhance confidence of local and foreign investors.

“There will be technology transfer, skill enhancement and Human Capital Development and direct and indirect employment will be generated” he said.

The visiting side has also shown interest in Pakistan’s mines, minerals, fertilizers, phosphate and LNG storage capacity.

He further added that 8 other MoUs will also be signed, including in sectors like ,mineral development, renewable energy resources, drug control and its smuggling, youth and sports, combating crime and cultural cooperation.

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