Pakistan State Oil (PSO) is currently in talks with the Bank of China and Sinopec for a significant investment partnership worth over $10 billion in Pakistan’s energy sector. These discussions, aimed at expanding the energy sector and fostering international cooperation, could potentially lead to the establishment of a major oil refinery or petrochemical facility within Pakistan.
According to informed sources, the Secretary of Petroleum recently provided an update to the Executive Committee of the Special Investment Facilitation Council (SIFC) on the progress of negotiations between PSO and representatives from the Bank of China and Sinopec. These talks are considered a crucial step and are expected to advance further during an upcoming visit by Pakistan’s caretaker Prime Minister, Anwar-ul-Haq Kakar, to China.
The SIFC has been actively involved in facilitating these discussions and has issued directives to key government officials to expedite various energy-related initiatives. To that end, the council has urged the Secretary of Petroleum, Secretary of Finance, Secretary of Law and Justice, Chairman of FBR, and Chairman of OGRA to finalize the Host Government Agreement (HGA) for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, ensuring adherence to established timelines and achieving consensus on outstanding matters.
Furthermore, a dedicated working group comprising the Secretary of Foreign Affairs, Secretary of Petroleum, and Secretary of Planning has been tasked with addressing the Pakstream gas pipeline project, with regular updates to be presented to the Executive Committee of SIFC.
In a significant development to enhance Pakistan’s energy supply, OGRA has taken the lead in formulating a comprehensive plan for the provision of virtual Liquefied Natural Gas (LNG) in collaboration with the Petroleum Division. The plan includes streamlining the necessary formalities for the issuance of No Objection Certificates (NOCs), a critical step in improving Pakistan’s energy infrastructure.
Simultaneously, the Minister for Maritime Affairs, Secretary of Petroleum, and Chairman of OGRA have received explicit instructions to devise an Action Plan aimed at optimizing the utilization of existing LNG terminals. This effort seeks to increase LNG imports and guarantee a stable energy supply well in advance of the winter of 2023.
The potential investment partnership between PSO, the Bank of China, and Sinopec signifies an important collaboration in Pakistan’s energy sector, with the establishment of an oil refinery or petrochemical facility being a significant stride towards strengthening the country’s energy infrastructure. The involvement of the SIFC and various government officials in facilitating these discussions highlights the commitment to expediting energy-related projects and ensuring steady progress in Pakistan’s energy sector.
