Islamabad: Pakistan is planning to expand its petroleum storage and refining capacity with a major oil refinery project in Gwadar, backed by expected foreign investment from Saudi Arabia, according to sources in the Ministry of Petroleum.
Officials said Saudi Arabia is likely to invest around USD 10 billion in the proposed refinery, which would mark one of the largest energy sector investments in the country.
Under the proposed structure, Saudi Aramco is expected to collaborate with Pakistani companies, with the project planned on a 60 percent Saudi and 40 percent local investment basis.
Sources added that key local energy firms, including Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL), are expected to participate in the venture.
The proposed refinery in Gwadar is expected to have a production capacity of up to 400,000 barrels per day, significantly enhancing Pakistan’s refining output and strengthening its energy infrastructure.
To attract investment, authorities are also considering a 20-year tax exemption on imported machinery for the project, aimed at facilitating long-term foreign participation in the country’s energy sector.
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