Saudi Arabia has agreed to build an oil refinery in the deep-water port of Gwadar, which is currently being developed by China.
Saudi Minister for Petroleum and Energy Khalid Bin Abdul Aziz said that a deal will be inked when the crown prince would visit Pakistan in February. The oil refinery is scheduled to be set up in Gwadar at a cost of $10 billion.
Saudi Minister for Energy Khalid al-Falih said,
Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China-Pakistan Economic Corridor.
He made these comments while visiting the site for the proposed oil refinery in the port city, a key site of China-Pakistan Economic Corridor.
At the occasion, Pakistan’s Minister for Petroleum Ghulam Sarwar Khan said that the Kingdom is set to become ‘an important partner of CPEC’.
According to a Saudi news agency, cooperation in other sectors of Pakistan like refining, mining, petrochemicals, and renewable energy is also being discussed between the two countries.
It needs to be mentioned here that Saudi Arabia is attempting to diversify its economy and reduce its reliance on oil with the help of foreign investments and collaboration. The country has shown a keen interest in the Chinese Belt and Road Initiative, of which CPEC is a major project.