Pakistani Energy Minister revealed that Pakistan is actively involved in discussions with Saudi authorities regarding the long-awaited Aramco oil refinery project.
Pakistani Energy Minister revealed that Pakistan is actively involved in discussions with Saudi authorities regarding the long-awaited Aramco oil refinery project. The minister expressed optimism, stating that tangible progress is expected within the next one to two months.
The collaboration between Pakistan and Saudi Arabia on various investment ventures, totaling $21 billion, was initiated in February 2019 during the visit of Saudi Crown Prince Muhammad Bin Salman to Islamabad.
Among these investments, approximately $10 billion was allocated for the Aramco oil refinery, while an additional $1 billion was earmarked for a petrochemical complex project intended for construction at the strategically significant Gwadar Port in Balochistan province.
Despite the initial enthusiasm and the signing of agreements, the Aramco oil refinery project has experienced significant delays, with little visible advancement nearly four years later. Energy Minister Muhammad Ali addressed the project’s current status during the 7th edition of The Future Summit in Karachi, highlighting that ongoing efforts are being made to push the project forward.
Explaining the delay, Ali emphasized the complexity of the venture, citing the substantial investment of $8-10 billion. He noted that aspects such as investment funding, structural considerations, and policy frameworks necessitate thorough evaluation and careful planning.
Responding to reports suggesting a potential shift in the project’s location from Gwadar to the Hub district in Balochistan, near Karachi, Ali clarified that the final decision rests with Aramco. The project envisions the establishment of an integrated refinery in Pakistan capable of processing up to 450,000 barrels of crude oil per day.
The Aramco oil refinery project holds significant economic importance for Pakistan, and the government remains committed to overcoming challenges and ensuring its successful realization. As the nation eagerly anticipates progress in the coming months, stakeholders and observers will be closely monitoring developments surrounding this crucial energy initiative between Pakistan and Saudi Arabia.