Establishment of new refineries to enhance capacity by 465,000bpd

[Naveed Yaseen]

By Sajid Chaudhry

ISLAMABAD: With the establishment of three new refineries in the country total refining capacity of the country would reach 713,506 barrels per day from existing 248,506 barrels per day.

The estimated capacity of the proposed refineries are: Khalifa coastal refinery project 250,000 barrels per day, Bosicor Oil Pakistan Ltd 115,000 barrels per day and Trans Asia Refinery Ltd 100,000. At present seven refineries are operating in the country having the capacity to refine 248,506 barrels per day. The individual capacities are: Pak-Arab Refinery Ltd 100,000 barrels per day, National Refinery Ltd 62,050 barrels per day, Pakistan refinery Ltd 47,110 barrels per day, Attock refinery Ltd 42,000 barrels per day, Bosicor Refinery Ltd 30,000 barrels per day, Dhodak refinery Ltd 2,500 barrels per day and Enar Petrotech Services Ltd 2,646 barrels per day. Feasibility studies are underway to produce 72,000 tonnes of copper concentrate from Balochistan with initial investment of $1 billion as well as up gradation of Chichali iron ore deposits. The Ministry of Petroleum in its written reply to the National Assembly informed that National Mineral Policy 1995 formulated by PPP government has enhanced country's international competitiveness because of attractive regulatory and fiscal regime. As a result of which mineral sector has secured foreign direct investment of $800 million and augmented revenue receipts from mineral sector by many folds.

Copper, gold and silver: With the endeavors of the present government Saindak Project Balochistan, operated by Chinese company, has started production of 16,000 tonnes of copper, gold and silver per year since 2003. Moreover, a joint venture of two foreign companies M/s Antofagasta and M/s Barrack Gold of Canada (M/s Tethyan Copper Company) is preparing feasibility study on mining and processing of Reko-Diq deposits in Balochistan to produce 72,000 tonnes of copper concentrate in the initial stage by investing $1 billion. The government of Pakistan and provincial government is providing required assistance to the company in this regard.

Pakistan has iron resources of more than 600 million tonnes, however, due to its low grade it cannot be used in Pakistan steel, which is importing iron ore by spending huge foreign exchange. Present government has given high priority to utilise indigenous iron resources. Pakistan Steel has been facilitated to acquire three leases of iron ore deposits in Balochistan. Efforts are underway to develop a mechanism for up gradation of indigenous iron resources to make it acceptable for utilisation in Pakistan steel. To facilitate the investors in Thar coal filed more than Rs 2 billion is been spent on discovery, evaluation of coal and development of infrastructure in Thar coalfield. To enhance the proved coal resources of the country Geological Survey of Pakistan has launched a project to explore, confirm more coal deposits in Kohlu-Chamalang area of Balochistan. The private sector has been allowed to import coal-washing plants to improve quality of Thar coal for processing industry.

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