Cool… Apparently work will be starting in a month or so… Also, it will be in Balochistan, which will be great for the province.
Abu Dhabi to set up $5bn oil refinery
By Shahid Iqbal
KARACHI, Feb 15: Abu Dhabi will establish a $5 billion crude oil refinery in Pakistan, having a refining capacity of over 100 million barrels per year, reported Middle East’s leading newspaper Arab News on Thursday.
The newspaper quoted a senior official of the Consulate-General of Pakistan saying that Abu Dhabi-owned International Petroleum Investment Company (IPIC) will establish a $5-billion crude oil refinery in Pakistan.
A powerful delegation from Pakistan, led by the petroleum secretary, Ahmed Waqar, held talks with high-ups in the IPIC.
The newspaper quoted Press Consul Dr Mohammad Zafar Iqbal as saying that the Abu Dhabi IPCI agreed to set up Khalifa Coastal Refinery in Hub, Balochistan.
The refinery will have a capacity to refine 102.7 million barrels of crude oil per annum.
The IPIC will hold 74 per cent while the Pakistan government will own 26 per cent stake in the project, Iqbal said.
The ground-breaking ceremony of the project will take place next month. General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, is expected to visit Pakistan to lay the foundation for the mega project.
Iqbal said the refinery would substantially boost Pakistan’s capacity to refine crude and also create job opportunities for thousands of skilled and unskilled people in the country.
Iqbal said the ground-breaking ceremony would be attended by senior officials from the UAE, including Abu Dhabi’s Crown Prince.
Pakistan Ambassador to the UAE Ahsanullah Khan, Pakistan’s Ministry of Petroleum director-general Sabar Hussain, Parco Managing Director Rasheed Jhang and senior IPIC officials, including Khadim Al-Kubeisi, attended the meeting.
The economic growth in Pakistan has created vast opportunities for oil refining companies to make money as energy demand is rising sharply. It is not only the oil and gas but the power sector has also great potential to yield huge profits for investors.
Pakistan mostly depends on imported crude oil to get refined products.
Experts said that Pakistan provides great support to refineries as the government does not tax crude oil at import stage and tax is imposed on sales in the market. Pakistan pays largest import bill to import petroleum products.
Pakistan is also desperately looking for huge investment in power sector as the demand for electricity is increasing and may turn into crisis if the demand is not met by 2009-10.
http://www.dawn.com/2007/02/16/ebr2.htm