Prime Minister Shahid Khaqan Abbasi said on Friday that the White Oil Pipeline Mogas (WOPM) project will help in promoting the country's economic growth and bring oil prices down by Rs 1 to Rs 1.5 per litre. "We have changed energy landscape of the country in four years, and today we use best standard oil of the world. I am sure this project will be completed in time and reduce cost since our fuel consumption has been increasing by 20 per cent on yearly basis," he said, addressing guests at the groundbreaking ceremony of the WOPM project. WOPM itself is a project of PAPCO, the Pak-Arab Pipeline Company.
The prime minister said that the new project will strengthen the economic growth of the county, and gave the assurance to transporters that, far from affecting their business, the project will assist them in fuel transportation. Tankers are the backbone of Pakistan's fuel supply, he said.
PAPCO chairman Muhammad Jalal Sikandar Sultan said in his speech that WOPM is meant solely for commercial purposes, primarily meant for augmenting Pakistan's energy infrastructure and streamline its oil logistics. He said that the project has immense socio-economic and strategic benefits-by way of cheaper, faster and safer transportation of fuel, reduced road maintenance, reduced congestion, fewer accidents, and lower levels of environmental pollution, leading to savings in health costs-and it will continue to be reaped for decades to come.
PAPCO CEO Shuja Uddin Ahmed said in his own speech that the prime minister's presence on the occasion was "a source of immense encouragement" for the other joint venture partners, Pak-Arab Refinery Limited, Shell Pakistan, Pakistan State Oil Company and Total PARCO Marketing Limited.
He said PAPCO invested nearly $134 million towards the building and streamlining the country's energy-related infrastructure. He called the white oil pipeline project an outstanding example of public-private partnership for augmenting the country's energy infrastructure said.
"It has increased the depth and reliability of the oil logistics, and thereby facilitated sustained economic growth, as well as strengthened the National Defence Factor. It has also helped to boost the confidence of Pakistani professionals in their ability to successfully implement similar infrastructure mega-projects in the future," he added.
But he said Pakistani consumers continue to face the brunt of increased cost exposures as a result of its inefficient means of cross-country transportation of crude and refined oil.
In 2005, PAPCO was incorporated with environmental conservation, infrastructure development and the national exchequer in mind, through adoption of the most efficient, economical and safest means of transportation of refined oil to destinations across the country.
PAPCO established the sole white oil pipeline system of the country. The company operates a 786km long countrywide pipeline system transporting HSD from Port Qasim to Mehmood Kot. Figures available show that with the advent of better global reforms in transportation of white oil across different territories interlinked via land routes, the safest and the most efficient and economical mode of transportation is through the pipeline structure.
The pipeline system has a slated design capacity of 8 MMT p.a., expandable to 12 MMT p.a., with the inclusion of excess storage facilities. The pipeline has been contributing over Rs 115 billion in terms of savings for consumers, in addition to adding massive storage facilities and reducing significant road degradation and safety exposure.
The project envisages a construction period of 24 months and is expected to commence operations by mid of 2019.
With this investment, PAPCO will be able to contribute over Rs 400 billion in savings for Pakistani consumers, in addition to adding massive storage facilities and reducing approximately 1,500 trucks per day off roads which will indeed be a significant contribution towards reduction of road safety hazards and environmental and infrastructure degradation. Governor Muhammad Zubair, Chief Minister Syed Murad Ali Shah, the federal secretary of the Ministry of Energy (Petroleum Division), the chairman of the PAPCO Board, Muhammad Jalal Sikandar Sultan and the chairman of DESCON Engineering, Razzak Dawood were among the prominent guests on the occasion.
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