ISLAMABAD - Ministry of Petroleum and Natural Resources has sought land from KP government for an oil refinery to be established by PSO in a bid to meet the growing needs of POL products in the country.
“Petroleum Ministry has written a letter to CM of KP province asking to provide land for an oil refinery”, sources privy to the development informed TheNation adding, that refinery will be established by the Pakistan State Oil (PSO) in a bid to meet the growing needs of petroleum oil and lubricant products in the country.
They further told that incumbent management of the Pakistan State Oil (PSO), in a bid to make the oil marketing giant an integrated company first time in the history of Pakistan, has devised a mega plan under which the set up of an oil refinery in KP province with a refining capacity of 36,000 barrel per day is to meet the growing needs of POL products in the country. Financial institutions have so far showed their confidence and willingness to provide Rs40 billions as a loan to the PSO for establishing oil refinery in KP, sources added.
It is also learnt that a total 40,000 barrel of crude oil is being extracted on daily basis from Potohar region and KP while more successful discoveries of crude oil are likely in near future in the KP as work on oil discoveries is on full swing to meet the worsening needs of POL products of an energy starved country. “If oil refinery is not established in the KP province now then extracted crude oil will have to supply to ARL along with the PARCO of Muzaffargarh resultantly heavy cost of transportation will also have to bear, sources said, adding, that with the establishment of an oil refinery in the KP will reduce hefty transportation cost of crude oil.
It is worth mentioning that currently in the country, the Petroleum Oil and Lubricant (POL) products are being extracted at Pak Arab Refinery Ltd (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Attock Refinery Limited (ARL) and Bosicor Oil Refinery of the country.