IPIC refinery plan on course: minister

[LahoreEstate]

IPIC refinery plan on course: minister
DUBAI (May 14 2009): Abu Dhabi government-owned International Petroleum Investment Company's (IPIC) plan to build a refinery in Pakistan is on track, minister of investment said on Wednesday. "I just had a meeting with IPIC two days ago and they told me the project is on track," Waqar Ahmed Khan told reporters at a news conference. Executives from IPIC declined to comment.

In January IPIC said it had delayed plans to set up a $5 billion refinery which will run 250,000 barrels per day in Pakistan. "The only reason why IPIC said the project could be delayed in January was because of international financing decisions they have to make during these hard times," he told Reuters after the news briefing. "It has nothing to do with the Pakistan political situation."

Last year Khadem al Qubaisi, the CEO of IPIC said that the company faced problems in Pakistan and would delay the project until "fundamental issues" were resolved. Pakistan faces an electricity shortfall of 4,500 megawatts, which creates opportunities for significant investment in the energy sector, said Khan.

"Although this figure is expected to decrease to 2000-2500 MW within the next 18 months, increased energy consumption may, in fact, result in an increase in the shortfall." He added that the government of Pakistan was in the process of enacting legislation that will provide foreign investors with legislative cover, with no subsequent change later.

Pakistan also faces a shortage of Liquefied Natural Gas (LNG) imports and will talk with producer Qatar on the matter on Thursday, Khan said. During this week's visit to the UAE the minister held talks with Abu Dhabi's Future Energy Co (Masdar) and Taqa, he added.


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