UAE to go ahead with Pakistan refinery
US$ 5 billion refinery is back on track according to reports
The UAE is to go ahead with the construction of a US $5 billion oil refinery in Pakistan’s south western Balochistan province, DPA has reported.
The refinery, which will boast an output capacity of 250,000 barrels per day, was postponed in January but it now appears the project is back on.
“The major contentious issues have been resolved and the project will soon be kicked off," a senior official of Pakistan's Ministry of Petroleum and Natural Resources said.
The project is a joint venture between International Petroleum Investment Company (IPIC) and Pak-Arab Refinery Limited (PARCO).
PARCO reportedly has provided US$ 500 million of funding to get the project off the ground. “Out of this total amount, the PARCO board of directors approved immediate release of 13 million dollars to start subcontracting work related to the implementation of the KCR project," the official stated.
The proposed refinery will produce energy fuels out of Arabian and Iranian crude oil.