Berthing of oil ships: Byco seeks to connect its SPM with white oil pipeline

ISLAMABAD: Byco Petroleum has come up with a proposal to connect its Single Point Mooring (SPM) with the white oil pipeline via Asia Petroleum Limited (APL) pipeline for berthing of oil ships.

Sources told that the Oil Companies Advisory Company (OCAC) had warned that supply chain infrastructure of the country for POL can be significantly expanded by connecting Byco's SPM with the white oil pipeline via APL pipeline, Byco management said in a letter sent to the energy minister.

Byco's SPM is an offshore jetty installed 12 kms in the deep sea, where from it receives crude oil directly into the refinery through a subsea pipeline.

The APL's 84 kms long pipeline is laid between Zulfiqarabad Oil Terminal (ZOT) near PQA and Hub Power Plant (adjacent to Byco refinery).

This pipeline is currently running idle due to Hub Power not being utilised much lately.

The distance to connect both facilities (SPM and APL) is barely 500ms.

The proposed connectivity will ensure security of energy supplies in all circumstances (peace and emergency) and savings of foreign exchange on account of freight and demurrages.

Byco Petroleum Pakistan Limited has been successfully running its SPM facility for about nine years now, Byco management said, adding that the SPM and its subsea pipeline has the capability of handling crude oil as well as POL products.

Byco is also in the process of expanding its SPM infrastructure by adding two more SPMs and an additional subsea pipeline which can be dedicated for POL imports.

“We believe you will acknowledge the potential in the above proposed scheme for the enhancement in oil supply infrastructure and would give kind attention for its implementation,” Byco said.

Meanwhile, the Oil Companies Advisory Council, a body of oil industry in a letter to the Secretary Petroleum, Dr Arshad Mahmood, said that the KPT requires all the importers and agents to submit an “Indemnity Bond” prior to berthing of vessels for absolving the KPT from the claims and liabilities, which may arise due to the compromised condition of OP-1.

In this direction, we have written series of letters highlighting “Port Constraints” at the KPT for early resolution, the OCAC said, adding that the OCAC on behalf of Downstream Petroleum Companies (Refineries and Oil Marketing Companies) would like to raise this issue of critical importance, which can disrupt the import supply chain of petroleum products especially crude oil and Mogas resulting into potential “dry-out” in the country.

It urged the Petroleum Division to take up the matter with the Ministry of Maritime Affair for resolution.

Copyright Business Recorder, 2021