ISLAMABAD - Saudi Arabia Minister of Energy, Industry and Mineral Resources is arriving in Pakistan tomorrow and is likely to sign a Memorandum of Understanding (MoU) for setting up an oil refinery at Gwadar.

The Saudi minister, Khalid al-Falih, along with his delegation will land at Gwadar where he is likely to sign two MoUs related to oil and mineral resources development, official source in the Ministry of Energy (Petroleum Division) told The Nation here Thursday.

The Saudi delegation is likely to include 15 people and they will sign an MoU on setting up a refinery in Gwadar. The Saudi minister is also likely to sign an MoU on the minerals development in Baluchistan.

Federal Minister for Petroleum Ghulam Sarwar meanwhile reached Quetta and held a meeting with the provincial Chief Minister.

The minister will receive the Saudi delegation at Gwadar, where he will be joined by the officials of PSO and BOI, said the source.

Saudi state owned oil giant Aramco is interested in setting up an oil refinery at Gwadar. The MoU for the construction of Aramco oil refinery has already finalized and it has been presented to the Federal Cabinet.

According the estimates given by the Board of Investment, Saudi Arabia is likely to invest $5 to $10 billion in the oil refinery and petrochemical complex at Gwadar.

However, the source said that the refinery would likely to cost around $4 billion to $8 billion and will have the capacity up to 0.4 million barrels per day. The refinery would have the potential to further expand its capacity.