Pakistan’s largest oil refinery inks 20-year deal to use Asia Petroleum Limited’s pipeline
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Cnergyico Pk Limited (CPL), Pakistan’s largest oil refinery, said on Wednesday it had ratified the execution of a Head of Terms Agreement with Asia Petroleum Limited (APL) for the utilisation of APL’s 14-inch pipeline system for a proposed term of 20 years.
The company disclosed in a notice to the Pakistan Stock Exchange (PSX) today.
The notice said that the arrangement will enable transportation of high-speed diesel (HSD) from CPL’s refineries to the Zulfiqarabad Oil Terminal, with onward connectivity to the White Oil Pipeline (WOP) system and storage terminals at Port Qasim.
“The agreement outlines the agreed commercial and regulatory framework for pipeline-based transportation and contemplates execution of definitive agreement(s), subject to fulfilment of specified conditions precedent, including requisite governmental and regulatory approvals and completion of connectivity.”
The company further said that the proposed arrangement is expected to reduce reliance on road transportation, thereby minimising road congestion and accident risks.
The arrangement will also enhance supply chain reliability through direct refinery-to-terminal connectivity and access to the WOP system, read the notice.
Cnergyico Pk is vertically integrated across the oil refining and marketing industries and owns and operates a crude oil terminal.
The company also operates Pakistan’s biggest oil refinery in terms of nameplate capacity, the largest capacity crude oil storage tanks in the country, and a network of petrol pumps.
Cnergyico was incorporated in Pakistan as a public limited company in 1995. It was previously known as Byco Petroleum Pakistan Limited.
Reference Link:- https://www.brecorder.com/news/40408908
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
