Petroleum Minister of Pakistan Ghulam Sarwar Khan said Saudi investment in the refinery will cut annual oil imports upto $ 1.2 billion. Federal minister in a statement said that Saudi Arabia has expressed strong interest in petrochemical sector of Pakistan. Minister termed the investment as ‘Game changer’.
Ghulam said that 10 Memorandum of Understandings (MoUs) including one on a $10 billion oil refinery and petrochemical complex are going to be signed with the Saudi Arabian government during the visit of Saudi Arabian Crown Prince Muhammad Bin Salman to Pakistan. New venues of cooperation will be unlocked on visit of Muhammad Bin Salman,” he said.
The Saudi Arabia has indicated that the capacity of proposed oil refinery will be between 11-13 million tons per annum. The cost of the refinery will be determined after the feasibility study. Initially both sides will study the feasibility of the proposed project after signing of the MoU.
The petroleum minister said that the technical teams of Saudi Arabia had visited Gwadar and Karachi. He further added that the oil refinery would result in added benefits such as reliability in fuel supply, import substitution and exports.