Karim Madad

East Sea Group Limited, a major global company, has planned to invest $4.5 billion in setting up an oil refinery plant in Pakistan, WealthPK reports.

The planned refinery plant will have an annual refining capacity of eight million tonnes. The plan of investment in the refinery plant was disclosed by chief executive of East Sea Group Limited Fang Yulong, who is also Senior Vice President of the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI), during a meeting.

“We will build an international Gwadar Petroleum Storage and Transportation Trading Centre,” he said. The project would attract the world’s major oil companies and firms to Pakistan’s Gwadar Port, the spokesperson for PCJCCI told WealthPK.

“We will place at least six ships of crude oil for blending and transhipments with a total of two million tonnes per month at the Gwadar Port in Pakistan,” said Fang. He added that the plant would provide services to major oil-producing countries in the Middle East.

He stressed the need for the development of the energy industry and said that it was an important catalyst for the transformation of the economic structure.

“It can stimulate the development of various downstream industries. It can reduce the trade deficit and increase foreign exchange income reserves in Pakistan,” he said.

Fang said that Gwadar is the throat of several important maritime routes from Africa, Europe, the Red Sea, the Strait of Hormuz, 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 will make Gwadar an energy and petrochemical trade centre.

“The establishment of Gwadar Petroleum Storage and Transportation Trading Centre will bring more powerful support to ensure the diversity, convenience and safety of Pakistan’s energy supply, which will not only further enhance Pakistan’s international influence, but also facilitate the sustainable development of the national economy,” said Fang.

He said that East Sea Group Limited has great shipping capabilities and rich experience in oil products blending, transhipments and barge operation.

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

Credit: Independent News Pakistan-WealthPk