With an investment of around $ 200 million, Pak-Arab Pipeline Company (Papco) - a high speed diesel supply chain in Pakistan is in the process of multi-grading its white oil pipeline to transport motor gasoline from Karachi port to Mehmood Kot in Multan. This was stated by External Relations Manager Shell Pakistan Limited (SPL), Habib Haidar, during a media visit to Shell Terminal located at Keamari Tuesday.
He said that Papco is a joint venture company, with SPL has the largest private equity share of 26 percent in the 78-kilometer white oil pipeline from Karachi to Mehmood Kot. PARCO enjoys 51 percent, Pakistan State Oil (PSO) 12 percent and TOTAL PARCO Marketing Limited 11 percent shareholding. The pipeline is currently dedicated to transporting High Speed Diesel (HSD) upcountry from the Karachi Port. However, Papco is in the process of upgrading the same pipeline to multi-grade, thereby allowing motor gasoline to be transported. The upgradation project of pipeline aims to add 150,000 tons of motor gasoline storage across the country.
"Work on the project is under way and we are optimistic that the formal transportation of motor gasoline will start by the 2nd quarter of fiscal year 2019," he told the media. The SPL has supported exponential growth in motor gasoline volumes, being the only company after the NOC that has import capabilities for a medium ranged marine vessel. The cumulative movement of POL products increased by 10 percent on YoY basis, with road transport 58.8 percent pipeline transfer 37.7 percent in FY 2016-2017.
Muhammad Zubair Supply Manager and Adeel Iqbal Plant Manager told media that the terminal is the oldest storage and handling facility commissioned in 1899. The terminal consists of two facilities (Terminal A and Terminal B) located approximately 50m apart. The terminal receives MOGAS RON 92, Avgas, Jet A-I, MOGAS RON 95 and HSD via Shell marine vessels berthed at Bulk Oil Piers 2 & 3 of Karachi Port (KPT).
Sharing statistics, they said that the Industry POL product mix has been 46 percent motor gasoline and 54 percent diesel over the past two years. Seventy percent of the current oil demand is imported and enters through Karachi before it is transported up-north. They said the share of imports for 2016-17 exhibited a YoY increase of 6.7 percent owing to higher volume of finished petroleum product as well as higher oil prices. He said that some 20 percent of diesel is presently being imported while 80 percent is locally catered. In the same way some 75 percent of motor gasoline is imported while 25 percent is locally catered.
Out of all oil products, he said the demand for motor gasoline, the most inflammable substance, is expected to increase the most. The demand rose by two and a half times in the last five years, partly due to natural gas being diverted away from CNG to industrial use, increased automotive sales and rising per capita income. Fakhr-e-Alam, Road Transportation Operation Officer and Ramko Oldenburger, Transport Manager, Shell also briefed the media on road safety standards adopted by the company.