Pakistan will expand its petroleum storage capacity, and a major Saudi investment is planned for an oil refinery in Gwadar.
Ministry of Petroleum sources indicate Saudi Arabia may invest around $10 billion in the Gwadar refinery.
The project envisions Saudi Aramco partnering with Pakistani companies, with a 60% share from Saudi investors and 40% from local firms.
Participants reportedly include Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL).
The refinery’s proposed capacity is up to 400,000 barrels per day.
A proposal is being considered to exempt imported machinery for the project from taxes for 20 years, to attract and secure long-term foreign investment in Pakistan’s energy sector.