Pakistan Announces Expansion of Petroleum Storage Amid Saudi Investment
Pakistan’s decision to expand petroleum storage capacity comes as significant investment from Saudi Arabia is expected for a new oil refinery in Gwadar. Sources within the Ministry of Petroleum reveal that Saudi Aramco plans to invest around $10 billion into the project.
The proposed refinery, with a production capacity of up to 400,000 barrels per day, will be developed through partnerships between Saudi Aramco and several Pakistani firms including Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL).
Saudi Arabia is set to contribute 60 percent of the investment, while local companies will cover the remaining 40 percent. To further attract this foreign investment, a proposal for a 20-year tax exemption on imported machinery required for the project has been put forward. This move aims to bolster Pakistan’s energy sector and secure long-term investments from international players.