During Prime Minister Shehbaz Sharif’s visit to Beijing in June, China and Pakistan are expected to sign a memorandum of understanding (MoU) on a crude-to-petrochemical refinery project.
A senior Ministry of Energy official stated that Pakistan State Oil, Sinopec and Saudi Aramco might conduct a joint study to evaluate the project’s economic viability. The study’s outcome will determine the investment, size and capacity of the refinery.
Saudi Aramco favors a petrochemical complex over a green refinery, pending the study results. Additionally, Saudi Arabia wants Sinopec to handle the engineering, procurement and construction (EPC) contract. Sinopec, known for its services in Saudi Arabia, will be involved in this proposed refinery, which aims to have a 70% capacity for refining petroleum products and 30% for producing chemical products.