2 Mega Refineries at Khalifa Point!

[AgNoStiC MuSliM]

Iran may revive coastal refinery project​

Thursday, October 25, 2007
By Khalid Mustafa

ISLAMABAD: In a major development, Tehran has indicated Islamabad that it will reinitiate work on Pak-Iran coastal refinery at Khalifa point near Hub, Balochistan, which was earlier shelved some years ago because of the dispute on the rate of return.

“During recent talks on Pak-Iran gas pipeline, Islamabad invited Tehran to start work on the project. Iranian authorities showed willingness to revive the project keeping in view the Economic Coordination Committee (ECC) approval of Khalifa Coastal Refinery, which the International Petroleum Investment Company (IPIC) of Abu Dhabi is setting up,” an official said.

“We have communicated to Iranian authorities that the tax exemption package including 20 years’ tax holiday, which has been given to IPIC for establishing the Khalifa coastal refinery at a cost of $4 billion to $5 billion, will be extended to Tehran for setting up the Pak-Iran refinery.”

He said: “We have a surplus of 700 to 800 acres of land at Khalifa Point which we have offered to Tehran for Pak-Iran refinery as free hold lease.”

He explained that land up to 1,000 acres at Khalifa Point will be provided to the joint venture of IPIC and Pak-Arab refinery as free hold lease without charging any rent.

The official said that earlier Pak-Iran refinery could not initiate as than was insisted to ensure the reasonable rate of return which Islamabad could not respond positively.

“Now the government has asked Iran to establish the refinery on commercial considerations as we refused to ensure guaranteed rate of return.”

Iranians have also been told that the government has also denied IPIC to ensure the guaranteed rate of return for Khalifa coastal refinery.

The official mentioned that when the Pak-Iran refinery project was earlier conceived some years back, it was planned that the said project would be located at Khalifa Point, with capacity to refine 6 million tonnes of Iranian heavy crude.

As far as the Khalifa Coastal Refinery is concerned, the official said that this refinery in the first quarter of 2011 with capacity to refine 200,000 to 300,000 barrel of crude oil per day.

The IPIC and other UAE government-owned companies’ equity would be 74 per cent and PARCO which will be operator of the refinery is allowed to take initially 26 per cent equity with the option to offload up to 20 per cent of their shares to parties with the approval of Pakistan.

Iran may revive coastal refinery project

 

[AgNoStiC MuSliM]

The other one mentioned recently:

UAE company to build refinery in Pakistan
​

Xinhua - English 2007-10-11 05:04:08 Print

ABU DHABI, Oct. 10 (Xinhua) -- An investment company of the United Arab Emirates (UAE) on Wednesday got an approval from the Pakistani government to build a refinery worth five billion U.S. dollars in the country's Balochistan province, Emirates News Agency reported.

The approval was made by the Economic Coordination Committee of the Pakistani cabinet chaired by Prime Minister Shaukat Aziz, said the report.

According to the report, the refinery will be established by the UAE's International Petroleum Investment Company (IPIC) and Pakistan-Arab Refinery Company (PARCO) as a joint venture with equity participation of 74 and 26 percent respectively.

An implementation agreement would be signed between the two sides within one month.

Located at Balochistan's Khalifa Point, the refinery will be completed and commissioned by the first quarter of 2011, with a refining capacity of 200,000 to 300,000 barrel per day.

Wholly owned by the Abu Dhabi government, IPIC focuses on investment in the hydrocarbon sector outside the Emirate of Abu Dhabi, with an investment portfolio valued more than 10 billion dollars.

 

[Neo]

Great move by GoP to restart engotiations on the stalled project now, the timing is perfect!
Pakistan is probably the safest investment market for Iranian money at the moment, if we do this right much more FDI will pour into the country!

 

[AgNoStiC MuSliM]

^^The timing is interesting, with the IP(I) pipeline making headway - possibly an added incentive for Pakistan to finalized the project, especially with all the TAP reports doing the rounds.

Hope they both go through.

On a related note, I wonder how much effect the sanctions imposed by the US today are going to have on either project.

 

[PakistaniPatriot]

Now how does this really help. Because currently Pakistan's economy is unimaginably bad for the people. I mean inflation is the most ever.

 

[Neo]

^^The timing is interesting, with the IP(I) pipeline making headway - possibly an added incentive for Pakistan to finalized the project, especially with all the TAP reports doing the rounds.

Hope they both go through.

If we play the cards right both projects will go through, their money nor oil is safe in Europe or Japan. Pakistan can offer trasit facilities to Iranian oil becoming a hub, i.e. refining crude oil to petrolium and perto-chmicals and reexprt it. Thats the bigger picture and Teheran finally realised that.

On a related note, I wonder how much effect the sanctions imposed by the US today are going to have on either project.

Its not going to make a big difefrence because we intend to go ahead with the pipelines since US has failed to provide an alternative.

Iran has Russia and China backing her, arabs are will ing to invest in infrastructure in Pakistan...Iran can finance its own deal of the pipeline...which means that both technology and money is available and so is manpower.
Nothing can go wrong, sanctions will affect investment in Iran, not Pakistan.

 

[AgNoStiC MuSliM]

Pakistan Patriot,

Food inflation, which is what is really hurting the common man right now, is not necessarily going to improve until the government, this or the next, figure out how to manage and regulate the supply side properly. Better crop forecasting, reporting, arrangements for adequate buffer stocks, an efficient and quick system to get stocks to markets in case of shortages. Better enforcement against hoarding practices, and this would mean the "big fish", etc.

The government has taken some steps to promote storage facilities for perishables, ironically being criticized for that move, since it was seen as contributing to the "hoarders storage capability".

 

[Sena Lee]

This is good news for Pakistan.

 

[HAIDER]

Major customer of oil China and India. Soon rest of far eastern countries too. That would save the time. Loading the tanker without touching Hurmoz or Bander Abbas. Extremely strategic importance of this seaport. Existence in save zone. A patrol pump right on mouth of open sea. A deep sea port.