Chinese group to invest $4.5bn to build refinery in Gwadar: PCJCCI

LAHORE: Fang Yulong, Senior Vice President of Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) and CEO of East Sea Group Limited has planned to invest US 4.5 billion dollars to build a refinery plant with an annual refining capacity of eight million tons in Pakistan.

This was stated by him during a briefing at think tank session of PCJCCI on Thursday at PCJCCI Secretariat.

He said: “We will build an international Gwadar Petroleum Storage and Transportation Trading Center. This project will attract the world’s major oil trading companies and oil companies to Pakistan and we will place at least six ships of crude oil for blending and transshipment operations with a total of two million tons per month at the Gwadar port in Pakistan. It will provide oil to major oil-producing countries in the Middle East of oil transfer, STS and blending services.”

Fang stressed that the development of energy industry is an important catalyst for the transformation of economic structure. It can not only stimulate and guarantee the industrial development of various downstream industries, but also further reduce the trade deficit and increase foreign exchange income reserves in Pakistan.

He added that Gwadar is the throat of several important maritime routes from Africa, Europe, the Red Sea, the Strait of Hormuz, and the Persian Gulf to East Asia and the Pacific. The strategic location close to major oil-producing countries and shipping routes and good political relations with oil-producing countries make Gwadar a potential energy and petrochemical trade center. The establishment of an international Gwadar Petroleum Storage and Transportation Trading Center will bring more powerful support conditions to ensure the diversity, convenience and safety of Pakistan’s energy supply, which will not only further enhance Pakistan’s international influence, but also support the sustainable development of the national economy.

In his closing remarks he said that East Sea Group Limited has great shipping capabilities and rich experience in oil products blending, transshipment and barge operation.

Gwadar’s excellent deep-water port and favorable geographical location, as well as Pakistan’s good and close government relations with surrounding oil-producing countries will definitely add value to this project.

Copyright Business Recorder, 2022