Pakistan State Oil (PSO) has asked Chinese petrochemical firm Sinopec to build a refinery and petrochemical complex in Pakistan in collaboration with Saudi Aramco.
Managing Director/CEO of PSO Syed Muhammad Taha penned a letter to the President of Sinopec Corp, Yu Baocai, to help set up a greenfield refinery and petrochemical plant in Pakistan, reported Business Recorder.
The joint venture between PSO and Saudi Aramco would have a processing capacity exceeding 300,000 barrels per day and is expected to yield a variety of high-value petroleum products.
The PSO executive told Sinopec that Pakistan has provided incentives such as a 20-year tax holiday, 7.5 percent deemed duties for 25 years on gasoline and high-speed diesel production, and exemption from taxes on imported equipment.
Taha said Pakistan’s energy demand will double by 2035 which presents a significant opportunity for Sinopec to timely develop a strategic presence in the market.
The PSO MD expressed interest in exploring various partnership models, including joint ventures, build-operate-transfer agreements, and technology licensing.
The government will work on a new policy framework to woo Saudi Aramco and China’s Sinopec into a joint collaboration on the project.
It bears mentioning that Pakistan’s Deputy Ambassador to China recently met with representatives of Sinopec to discuss the $10 billion project.
