Four Pakistani state-owned companies and the Saudi Arabian company Aramco have partnered to develop the 300 kb/d Greenfield refinery, which will be located near Gwadar in south-western Pakistan. Oil and Gas Development Company Limited (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Government Holdings Private Limited (GHPL) and Aramco have thus signed a Memorandum of Understanding for the development of the project.
The integrated refinery petrochemical complex will comprise various components such as marine infrastructure, petrochemical complex, storages for crude oil and refines utilities, as well as pipeline connectivity. The establishment of the refinery is also expected to contribute to reducing Pakistan’s bill related to petroleum products imports.
As of end-2021, Pakistan’s refinery capacity stood at 411 kb/d. The refining capacity is distributed over 6 main refineries: National Refinery Ltd in Korangi, Karachi (62 kb/d); Pakistan Refinery Ltd in Karachi (47 kb/d); Attock Refinery Ltd in Rawalpindi (43 kb/d); PARCO (100 kb/d) in Mahmood Kot, Punjab; Byco in Karachi (30 kb/d); and Balochistan Hub Refinery in Hub (120 kb/d; commissioned in 2012 and extended in 2015). This capacity is deemed insufficient: in 2021, Pakistan imported almost 60% of its refined oil product needs.