PSO, Parco to build oil pipelines, terminal

Aftab Ahmed

Islamabad: Oil pipelines are sustainable options to transport oil across the country. Pakistan State Oil (PSO) and Pak Arab Refinery Limited (Parco) have signed an agreement to build oil pipelines and developing an oil terminal having a single Point Moring (SPM) Facility at Hub for oil import.

Pak Arab Refinery Limited (Parco) is working on Coastal Refinery Project and will set up an oil terminal at Hub. The single-point mooring facility will help import crude oil to process in Coastal Refinery Project.

Abu Dhabi and Pakistan are joint partners in the Parco refinery project. Therefore, they have also partnered with Coastal Refinery Project.

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Earlier, UAE had shelved this refinery project following a tussle with the PPP government over removing managing director Parco.

This will also enable the PSO to utilize Asia Petroleum Limited (APL). This pipeline has defaulted due to a lack of furnace oil transportation.

The country’s power generation plants have been shifted to LNG fuel. The government is facing a loss of $12 million every year as the pipeline is not functional now due to the shifting of the Jamshoro power plant from furnace oil to LNG.

Earlier, Byco had approached the government to hand over APL for the transport of petroleum products.

MoUs

Pakistan State Oil (PSO) has inked multiple infrastructural MoUs with Pak Arab Refinery Limited (PARCO) and Pak Arab Pipeline Company (PAPCO) to safeguard the country’s fuel supply chain.

Under a plan, they will set up pipelines and a single point Moring facility with the objective of safeguarding the country’s petroleum product supply chain and enable economical and environment-friendly transportation of fuels.

Both entities have joined hands to build a strategic pipeline link of 20 km to connect the ports of Keamari and Port Qasim to transport motor gasoline and high-speed diesel. This will be called the Keamari Korangi Link Pipeline 2 (KKLP-II).

This is a major milestone for sustainable and environment-friendly steps to reduce harmful tailpipe emissions and ensure safe transportation of highly volatile petroleum products. This will also result in easing traffic congestion in Karachi and other cities.

They have also agreed to work out the option of developing a terminal at Hub having a single point mooring (SPM) system which will allow imports through VLCCs and set up pipelines. Managing Director & CEO PSO – Syed Taha, Managing Director PARCO – Mr. Shahid Mehmood Khan, and Chief Executive PAPCO – Mr. Amr Ahmed have signed a memorandum of Understandings (MoUs).

Other Senior officials of PSO including Chief Commercial Officer – Shehryar Omar, General Manager Infrastructure Projects and Maintenance – Hammad Zafar also attended a signing ceremony. General Manager Supply – Mr. Asad R Faiz was also present during the signing of MoUs.