Power China International Group Limited (PCGIL), a Chinese state owned company, is to set up upcountry deep conversion oil refinery with an investment of $7-8 billion, official sources told Business Recorder. The Chinese group, sources said, had evinced interest in developing a mega oil refinery project in collaboration with two other Chinese companies ie SINOPEC and CNPC and investment from Gulf countries under Public Private Partnership (PPP) model.
The sources said, some Pakistani public sector oil and gas companies ie Pakistan State Oil Company Limited (PSOCL), Pakistan Petroleum Limited, Oil & Gas Deployment Company Limited (OGDCL), Government -Holding Private Limited etc. would be encouraged to participate in the project as equity holders to be determined by their respective Board of Directors after ascertaining feasibility of the project. Total cost of the project was estimated at US$7-8 billion to be firmed up after detailed feasibility report.
According to sources, a non-binding MoU was signed at Boao Forum in China in the presence of the Prime Minister during his visit to China from 8-11 April, 2018 between PSOCL and PCGIL to conduct a feasibility study to ascertain financial and economic viability of the project. The cost of the study would be borne by PCGIL.
The sources further stated that Law & Justice Division had vetted and cleared the MoU from legal point of view, while the views/comments of Planning, Development & Reform, Foreign Affairs and Finance Divisions were also in favour of the project.
In terms of rule 16(1)(h) of the Rules of Business, 1973, cabinet, in its meeting held on April 3, 2018 approved signing an MoU between Pakistan State Oil Limited and Power China International Group Limited for the establishment of upcountry deep conversion oil refinery with capacity of 250,000-300,000 barrels of oil per day to be located in Punjab under PPP model.
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