Balochistan is Getting a Massive Refinery Soon

The Board of Investment (BoI) has sought responses from concerned Ministries to questions posed by a consortium planning to build a 10-million-ton-per-year (MTPA) refinery in Balochistan.

BoI has requested additional information in a letter to the Petroleum Division, Power Division, Federal Board of Revenue (FBR), and Ministry of Industries and Production in order to facilitate the company’s investment in the establishment of the refinery, according to Business Recorder.

Capital Strategies Group (Pvt.) Limited (CSG) and a Chinese consortium are working together to build the proposed 10 million MTPA refinery in Pakistan. The company has sought additional details and information in order to finalize the project outline.

Some of the requested details cover information such as:

1. are both Gwadar and Karachi available for crude oil import and finished product export
2. is there enough electricity supply for the refinery (200 MW) possible location of Hub/ Karachi/ Gwadar
3. if the company opts for captured power what locations are suitable for coal imports
4. any incentives regarding the tax for investors or duty-free import of machinery
5. is there a government-pre-approved list of industries for Chinese investors
6. is there any potential local off-taker? Will the local OMCs act as off-takers for this product
7. is there any existing industrial zone with enough land for the refinery
8. is there an industrial zone in Gwadar/ Hub/ Karachi where the company can take advantage of investment incentives
9. what are the licensing and regulatory requirements needed to put up an oil refinery

CSG is a prominent trading firm headquartered in Pakistan. The company is one of the leading firms in the country, representing multinational corporations in the energy, infrastructure, vertical transportation, cement, fertilizers, and defense sectors.