PowerChina pledges to support the Upcountry Deep Conversion Oil Refinery and Crude Pipeline Construction Project

In April 2018, Power China International Group signed a Memorandum of Understanding (MoU) with state-owned Pakistan State Oil (PSO) to undertake financial and economic feasibility studies under a Public-Private Partnership (PPP) model for the Upcountry (Lahore) Deep Conversion Oil Refinery and Crude Pipeline Construction Project. According to a 2020 Development Plan from the Pakistan Ministry of Energy, the studies were ongoing, and ownership of the refinery was reported to be split equally between Power China and PSO equally (pg.56). From 2021-2025, the capital expenditure was estimated to be USD 850 million, however, it is unclear what percentage of that Power China is expected to fund, as the project's planned completion date is 2029. The project proposal calls for constructing an oil refinery near Lahore with a capacity between 250,000 and 300,000 barrels/day (bpd). The crude oil pipeline would carry oil and other finished products from Karachi to Punjab, Khyber Pakhtunkhwa, and other parts of the country.

Additional details

1. As the estimated capital venture funding recorded "2021-2025", it is possible Power China has already started funding this project. However, as AidData was unable to find any official financial documentation confirming a transaction, this project remains in a Pledge status.

Number of official sources

3

Number of total sources

10