ISLAMABAD: The Pakistan State Oil (PSO) will set up a technologically advanced refinery as part of efforts to develop a self-reliant energy supply chain for the country.
The facility having a capacity of 40,000 Barrels Per Day (BPD) will be constructed on about 400 acres of land in district Kohat - Khyber Pakhtunkhwa.
The company's spokesperson said the facility which would be fully commissioned by 2016-17 is being set up as a part of the new vision company to make a leading public sector company with the determination to secure Pakistan's energy supply chain.
The official said the PSO has already signed a Memorandum of Understanding (MoU) with Government of Khyber Pakhtunkhwa (GoKP) for establishment of a state-of-the-art oil refinery in the province.
As per this MoU, the project will be set-up through a public private partnership and will utilize crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards.
The spokesperson said establishment of this refinery will help improve the overall availability of POL products across the country as well as result in sizeable foreign exchange savings for the nation.
It shall also increase PSO's operational base through diversification in the midstream segment and lower distribution cost in the related supply envelopes.
In addition to these benefits, this refinery will also help in creating job opportunities for local populace as well as professionals from various technical backgrounds.
It is also expected that substantial foreign direct investment will also take place as a result of this project.
The project will serve as the foundation for future initiatives and suggested to continue efforts to do more for future progress and prosperity of Pakistan.
Quoting the company's MD, the spokesperson said, "By establishing this refinery, PSO has taken yet another step on the company is already working on a number of other projects which coupled with this refinery will help meet Pakistan's energy needs in the years to come."
PSO in its role of being both a public sector as well as the largest energy company in Pakistan today is committed to meeting all the fuel needs of the country in a timely and responsible manner.
The company, the spokesperson also added, as part of efforts regarding diversification of business line.
It has also signed a Memorandum of Understanding (MoU) with Engro Powergen Limited (EPL) to review of the technical and economical feasibility of the Thar coal project.
The MoU was signed keeping in view the fact that as coal is comparatively cheaper and easily available in comparison to other fuel sources, it has become the fuel of choice for developed nations across the world, the spokesperson said.
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