Analysis

Largest Pakistan fuel importer to become refiner

Pakistan State Oil, the nation’s biggest importer of petroleum products, plans to build the country’s largest refinery to process 200-250Kbd making it, it expands into crude oil processing.

Chief Executive Officer Sheikh Imran ul Haque said that the company is looking for partners to help build a plant, but didn’t elaborate on how it will be financed nor give a timeline for the project as it is at an initial stage.

Pakistan State Oil would like to “reverse the role,” and refine crude rather than import fuel, Haque said. “We are nowhere. We need to diversify.”

The size of the refinery means Pakistan State Oil will produce about 12Mta of fuel, similar to the amount the nation imported in the year ended 31 July. The plan will also help the country, that’s trying to meet revenue targets tied to an IMF loan, save on foreign exchange.