ISLAMABAD: Petroleum Minister Ghulam Sarwar Khan on Friday said annual oil import bill of Pakistan will be reduced by $1.2 billion because of the new Saudi Arabian refinery.

The Saudi Arabian side has expressed strong interest in exploring investment opportunities in Pakistan’s petrochemical sector which was termed as a ‘game changer’ and would result in savings of $ 1.2 billion per annum in import substitution, Ghulam Sarwar Khan said in a statement.

“10 Memorandum of Understandings (MoUs) including one on a $10 billion oil refinery and petrochemical complex are going to be signed with the Saudi Arabian government during the visit of Saudi Arabian Crown Prince Muhammad Bin Salman to Pakistan. New vistas of cooperation will be unlocked on arrival of Muhammad Bin Salman,” he said.

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The Saudi Arabian side has indicated that the capacity of proposed oil refinery will be between 250,000-300,000 bpd (11-13 million tons per annum). Whereas, the cost of the refinery will be determined after the feasibility study. Initially both sides will study the feasibility of the proposed project after signing of the MoU.

The federal minister said that the Saudi Arabian technical teams had visited Gwadar and Karachi. He further added that the mega oil refinery would result in added benefits like reliability in fuel supply, import substitution and exports.

“It will enhance confidence of local and foreign investors. There will be technology transfer, skill enhancement and Human Capital Development and direct and indirect employment will be generated. The visiting side has also shown interest in Pakistan’s mines, minerals, fertilizers, phosphate and LNG storage capacity,” he said.

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