$5 billion refinery plan approved
Posted: 16 October 2007
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The Pakistani government has approved construction of Coastal Refinery project costing $5 billion at Khalifa Point in Hub area of Baluchistan.
The decision was taken in the Economic Coordination Committee (ECC) of the Cabinet which met last month with the Prime Minister Shaukat Aziz in chair. Economic Advisor to Prime Minister, Dr Ashfaq Hassan Khan said the refinery would be established by Abu Dhabi ’s International Petroleum Investment Company (IPIC) and Pakistan-Arab Refinery Company (Parco) on a 74:26 joint venture, adding that it would be completed and commissioned by the first quarter of 2011.
He said that the project would cost US$4-5 billion with 200,000 to 300,000 barrel per day refining capacity, adding that preliminary work on the project work has already been started.
He said that the ECC approved the recommendations made by Energy Task Force which include 20 years tax holiday, waiver of 5 per cent worker's profit participation and waiver of 0.5 per cent service surcharge.
“These initiatives would be applicable for all the refineries and petrochemical projects to be installed along the coastal belt of Baluchistan , particularly Gawadar,” he added.
The ECC also allowed the Ministry of Petroleum and Natural Resources to sign implementation agreement with IPIC within a month. |
