ISLAMABAD: The Special Investment Facilitation Council (SIFC) has instructed the Ministry of Foreign Affairs (MoFA) to assist the Petroleum Division in engaging Saudi Aramco and Sinopec, persuading both entities to sign a non-binding trilateral MoU with PSO for cooperation on a $10 billion green refinery project.
Pakistan aims for the state-owned Pakistan State Oil (PSO), alongside Chinese company Sinopec and Saudi Aramco, to execute a non-binding MoU to realize the $10 billion green refinery, according to an official source.
It’s noteworthy that Sinopec has expressed concerns about the demand for petroleum products in the Pakistani market. In response, it has urged the Petroleum Division, in collaboration with Pakistan State Oil, to conduct a market study first. The source added that Sinopec will then decide on its role as an EPC contractor and its contribution to funding.
Reports suggest a proposal for a trilateral agreement between PSO, Sinopec, and Aramco to jointly assess the economic viability and benefits of a crude-to-petrochemical refinery for all three stakeholders.
In light of recent developments, Sinopec has requested PSO to independently conduct a market study to ascertain demand for petroleum products from the refinery. Pakistani authorities are reportedly in discussions with Sinopec management regarding this project.
Furthermore, reports indicate that Saudi Arabia prefers Sinopec for the engineering, procurement, and construction (EPC) contract. In this regard, PSO, nominated by the Government of Pakistan, is engaging with the Bank of China and Sinopec.
Additionally, the proposed refinery aims to allocate 70 percent of its capacity to refining petroleum products and 30 percent to producing chemical products.
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