ISLAMABAD: Petroleum Division is reportedly striving hard to include $20 billion petrochemical and industrial park, including a refinery at Gwadar, in the agenda of next meeting of Joint Energy Working Group (JEWG) of Pakistan and China established under CPEC framework.

According to a letter written by the Petroleum Division to Board of Investment and CPEC Authority, Petroleum Division is striving hard to set up stable and sustainable infrastructure for oil and gas sector in Pakistan in the light of recent data which reveals that consumption of petroleum products is increasing due to growth in economy and population.

Petroleum Division maintains that dependence on oil and gas is further expected to increase as the country’s infrastructure continues to heavily rely on petroleum based products. The country is also importing large quantities of refined petroleum products due to insufficient local refinery capacity. There is a need for setting up new refineries to reduce import of refined products.

Petroleum Division argues that in the past, Board of Investment had shared a proposal of M/s SIOT-CENTINCO, a consortium of Chinese companies, which intended to invest about $ 20 billion for establishment of a Petrochemical & Industrial Park (which will also have a refinery) near Gwadar. The consortium had asked for support to include the project under the CPEC Framework without any obligation or guarantees from the Government of Pakistan.

The request of SIOT and CENTINCO has time and again been taken up by the Petroleum Division (Development Wing) at different forums for inclusion in CPEC portfolio as Petroleum Division fully supports investments in the oil and gas sector under CPEC, without any guarantees for uplifting of its products or sovereign guarantees to be provided by the Government.

Petroleum Division further stated that currently the project has been again proposed to the Power Division, convener of the Joint Energy Working Group (JEWG) from Pakistan side for inclusion in the agenda in the next meeting of JEWG to be held shortly.

Petroleum Division, in its letter has urged on Board of Investment (BoI) and CPEC Authority to provide necessary support based on their mandate for inclusion of the project in the CPEC portfolio.

Copyright Business Recorder, 2022