Khalifa Coastal Refinery – towards energy sovereignty
In the rising deficit in petroleum, oil and lubricant ( POL) products, the emergence of Khalifa Coastal Refinery appears as a ray of hope to counter the energy crisis. The oil refinery is located at Hub, near Gaddani in Balochistan. The Pak-Arab Refinery (PARCO) and International Petroleum Investment Company (IPIC) of Abu Dhabi have entered into a partcipation agreement to establish the Khalifa Coastal Refinery valued at $6 billion. The IPIC and other UAE government institutions will have the majority shareholding i. e. 74 percent shares in the project, whereas Pak-Arab Refinery Limited (PARCO) will have 26 percent.
The proposed refinery would have the capacity to process 200,000 barrels of heavy crude oil and about 13 million tonnes of oil per annum. Khalifa Coastal Refinery is a deep conversion refinery, designed to process 250,000 bpd of heavy crude which will be procured from adjoining Gulf countries like UAE, Iran and Saudi Arabia, etc. The simultaneous launching of new related projects on the site, i. e. natural gas-fired power plant, grid station, seaport jetty and a city for refinery workers has escalated the cost of the project. The site is located an
area of 1,800 acres.
Importance of Khalifa Point
The development of Khalifa Coastal Refinery is a strategic investment and will play a pivotal role in enhancing the country’s petroleum-producing capabilities. With the construction of marine loading facilities to feed the refinery along with catering to export requirements, Khalifa Point would also develop into another port, proficient in handling liquid petroleum cargo. This would significantly contribute to the economic development of Pakistan in general and Balochistan in particular.
The petroleum products based on “ Euro IV” specifications will improve their environmental standards to international quality along with ensuring the marketability of the products.
Benefits of Khalifa Coastal Refinery
Foreign Direct Investment of about US $ 6 billion, which is the largest single foreign direct investment ( FDI) made in the country so far. This will bolster the much needed economic activity in a relatively less developed area. The oil refinery will bring improvements to the petroleum infrastructure in the country. It will strengthen the supply chain integrity of petroleum products and reduce the deficit of petroleum products. The project will generate direct and indirect employment during construction as well as in the operation phase. Training and development of local human resource through new opportunities and technology transfer will produce an extensively trained human resource, also equipped with latest technology. The productivity of local vendor and material supply industries will get a boost. It is a combined effort of the government and the private sector to boost welfare of the people. Ancillary and support industries will develop around the refinery complex