China-based Jereh Group is in talks with the Khyber-Pakhtunkhwa Oil and Gas Company (KPOGCL) for setting up an oil refinery in the province.
A refinery is being considered to cover for the exploration companies operating in the province, with an estimated capacity of handling 15,000 barrel per day.
CEO of Jereh Group, He Li came to visit Peshawar with a technical team to discuss feasibility and plans with KPOGCL CEO Muhammad Raziuddin and DGM Nouman Akbar. Also present at the meeting were KP Energy and Power Secretary Muhammad Naeem Khan and Planning and Development Secretary Shahab Ali Shah.
Mr. Li said that they are interested in going ahead with the project, after exploring all possibilities. Jereh Group’s delegation were also given a pre-feasibility study by KPOGCL in this regard.
Will Create More than 10,000 Jobs
At the meeting, CEO of KPOGCL, Muhammad Riazuddin said that this project would help create 10,000 jobs in the province. He added that this would also be helpful for hydrocarbon exploration companies operating in KP.
Mr. Riaz continued,
We envision a pipeline infrastructure directly from the wellhead to the refinery. According to a memorandum of understanding that has already been signed, the Jereh Group will conduct a detailed feasibility study.
$1 Million to Be Spent on Community Development
After the completion of the project, $1 million would be spent on community development by Jereh Group as part of its Corporate Social Responsibility.
The Memorandum of Understanding (MoU) was signed in Beijing on April 19th, 2017 for the joint venture between KPOGCL and Jereh Group for establishing an oil refinery. KPOGCL will act as the sole gateway for Jereh Group’s operations from security to the ground breaking ceremony of the project.