Chinese firm East Sea Group Limited (ESGL) plans to establish a 3 million-ton ship-to-ship (STS) oil blending facility at sea space in connection with a $4.5 billion oil refinery project in Gwadar. After the venture materializes, Pakistan will earn $ 20,000 to $ 40,000 annually.  

According to Gwadar Pro on Friday,  three million-ton STS oil blending facility will be established solely on the sea surface without any contact or use of the landmass of Gwadar. 

The rest of the 5 million-ton oil refinery will be on the land of the Gwadar Free Zone Area (phase II). With the 3 million-ton STS oil blending facility in the first phase and the 5 million-ton oil refinery in the second phase, Hong Kong-based Chinese firm East Sea Group Limited will build up an oil refinery with an annual oil processing capacity of 8 million tons.    

The mega plan of the STS oil blending facility was discussed at length in the 45th special urgent meeting of GPA board members. The meeting held at GPA head office Gwadar was participated by GPA board members, COPHC chairman, and ESGL officials. 

The meeting agreed to designate a specific sea area away from the 38 sq km anchorage area of Gwadar Port for the establishment of the STS oil blending facility. Instead of the northward side, the facility will be on the south side because the northward area has a depth of only 15 meters, while the southward side has a depth that ranges from 35 to 37 meters, which appropriately serves the purpose.  

Furthermore, Chairman GPA Pasand Khan Buleidi assured the visiting delegation of East Sea Group Limited of tax facilitation and duty exemptions set forth by all procedural and legal frameworks under Pakistan's transshipment rules.  

On the occasion, the ESGL officials committed that the company will buy 30 percent crude oil from the local market of Pakistan as Pakistan boasts 19 million tons of crude oil capacity. 

Credit: Independent News Pakistan-INP