Supply of gasoline from Karachi to Multan: White Oil Pipeline inauguration on Sept 1

ISLAMABAD: The federal government will inaugurate White Oil Pipeline (WOP) on September 1, 2021 for supply of gasoline from Karachi to Multan. The allocation for the construction work was $480 million, and $134 million has already been spent. The testing phase of the project has completed; however, commissioning of the project is scheduled from September 2021, a senior official of the Petroleum Division said.

To save the livelihood of oil tankers, initially, 35 percent total demand of the oil to Oil Marketing Companies (OMCs) would be transported through the pipeline. After the completion of the WOP, the pipeline would have the capacity to supply diesel and petrol both by increased capacity from 8MTPA (Million Ton per Annum) to 12MTPA for transportation of multi-product (High-Speed Diesel and Premier Motor Gasoline-Petrol).

Onward distribution from the OMC's oil depots to petrol pumps would remain intact through tankers. For the implementation of the 786km WOP from Karachi to Mahmoodkot, a joint venture company, Pak-Arab Pipeline Company Ltd (PAPCO) was created.

The PARCO holds a 51 percent majority share in PAPCO, while Shell, PSO, and TOTAL PARCO Marketing Limited hold 26 percent, 12 percent, and 11 percent shares in equity respectively. The 26" diameter White Oil Pipeline is designed for a capacity of 12 million tons per year, starting with five million tons in the initial years. In 2018, state-owned Inter State Gas System (ISGS) board of directors had passed a resolution for putting the fate of the planned WOP before the government.

Copyright Business Recorder, 2021