ISLAMABAD - The government was looking into a proposal of setting up new oil storage facilities and establishing oil marketing companies (OMCs) for more effective supply of petroleum products across the country.

The Oil and Gas Regulatory Authority, in the annual development plan, had proposed construction of ten new oil storage facilities, having combined capacity of 304,445 metric tons (mt) petrol and 446,335 mt diesel, during the current financial year. Moreover, ten new OMCs were also part of the proposal, official sources told APP.

The sources said the indigenous crude oil met only 15 percent of the country’s total requirements, while 85 percent requirements were met through imports in the shape of crude oil and refined petroleum products.

“The indigenous and imported crude is refined by six major and two small refineries,” they added.

They said the government was making efforts to bring improvement in existing refineries as well as attracting foreign investment in the sector.

Recently, the sources said, Byco Oil Pakistan Limited (Byco) had established an oil refinery at Hub, Balochistan, with refining capacity of 120,000 barrels per day (5 million tons per annum) at a cost of $400 million.

They said Byco had also installed Single Buoy Mooring (SBM) facility for transportation of imported crude oil and petroleum products from ships to the storage tanks. The capacity of said facility was 12 M. tons per annum. They said Pakistan Refinery Limited (PRL) had also installed an isomerization plant in 2016, since then its production of motor gasoline had doubled.

They said Pak Arab Refinery Limited (PARCO) was implementing a coastal refinery project at Khalifa Point, near Hub, Balochistan, which was a state of the art refinery, having capacity of 250,000 barrel per day (over 11 million tons per annum).