Magazine article Economic Review

PARCO Mid-Country Refinery and Pipeline Extension Project

Magazine article Economic Review

PARCO Mid-Country Refinery and Pipeline Extension Project

Article excerpt

Mid-Country Refinery Project will reduce country's dependence on imported petroleum products and in foreign exchange terms, it will result in annual savings of US$ 100 million.

The ground breaking ceremony of PARCO Mid Country Refinery and MEF Pipe Line Extension project was performed by Mohatarama Benazir Bhutto on August 31, 1995. The 100,000 b/d full integrated refinery is to be built at Mahmood Kot at a cost of about 756 million dollars and would be commissioned in 1999. While the PARCO Pipeline Extension Project is to be built at a cost of Rs. 4,500 million and would be commissioned by December 1996.

Mid-Country Refinery Project was visualized 20 years back but it could not be materialized for one reason or the other and the turning point in the history of the project, says Dr. Shahid K. Hak, Managing Director Pak-Arab Refinery Limited (PARCO, came when Prime Minister Benazir Bhutto wrote a letter in 1994 to Sh. Zayed, the ruler of Abu Dhabi, seeking his indulgence in early establishment of the refinery. Further impetus was provided by the government by announcing positive concessions through Petroleum Policy 1994 which made the project both economically and financially very attractive.

The refinery, having 4.5 million tons capacity per annum, instead of the 2 million tonnes capacity originally conceived, will start functioning by the year 1999. The project will reduce country's dependence on imported petroleum products and in foreign exchange terms, it will result in annual savings of US$ 100 million. During the construction period about 5000 jobs will be created and once it goes into production, about 1000 professional and skilled people will be employed to run the first ever modern refinery equipped with latest technology in the country.

PARCO's other major project is extension of petroleum product pipeline from Mahmood Kotto Machhike near Lahore via Faisalabad. …

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