Kuwait to build south-north oil pipeline and refinery in Pakistan


BE2C2 Report — Kuwait has agreed to invest millions of dollars into building a white oil pipeline from Pakistan’s south to north for transporting petroleum products from the port city of Karachi to major consumer province of Punjab.

“During a recent visit to Kuwait, Pakistani officials invited the Gulf oil producer to set up an oil refinery in Balochistan and lay a white oil pipeline; its response was very positive and a high-level Kuwaiti delegation will arrive in Pakistan to discuss the two projects,” said an official aware of the development, according to The Express Tribune.

Last week Pakistani premier Nawaz Sharif mad a two-day state visit to Kuwait where he proposed a Joint Business Council to boost private investment.

According to reports, the proposed south-north pipeline will supplement oil transportation in fuel tankers, which is plagued with incidents of theft. Estimates suggest $200 million worth of oil is stolen every year in connivance with tanker drivers.

“The second white oil pipeline will not only protect environment, but it will also be a safe source of fuel supply,” the official said.

Pakistan last September gave go-ahead to Kuwait Petroleum Corporation for developing the multi-million dollar refinery and oil storage project in the coastal area of Balochistan – host to the $56 billion China Pakistan Economic Corridor – its Chinese-built and operated Gwadar port will serve as gateway for huge shipping and north-south trading activities among China, the Middle Eastern and Central Asian countries.

At present, the annual demand for petroleum products in Pakistan stands at around 23 million tons and it is expected to touch 27 million tons by 2020.

Of the total demand volume, 56% are imported and 44% is met by domestic refineries.

Kuwait is also investing in solar power in the western province.

The Ener-Tech (Kuwaiti investment company) signed MOUs last year with Balochistan government to install from 50 MWs to 500 MWs solar power generation plants under a phased wise program.

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