$15 billion investment package likely from UAE including mega oil refinery in Pakistan

[GeraltofRivia]

This is a fantastic news. There have been many rumors about massive investment from KSA and UAE since the inception of CPEC but it is great to see large investment from these two nations, which is a vote for confidence in Pakistan’s future economy.

I think KSA and UAE have been watching closely over the last few years on CPEC on the depth and scale of commitment from China in Pakistan. While they are loaded with capital and have the genuine desire to help, they are quite conscious that they are not capable (both financially and technically) of uplifting a country Pakistan by themselves. They just simply cannot become the lead investor in such a country level venture but they can be a smaller investor (relatively) and are keen to get involved. The firm and massive commitment from China and the progress so far have convinced them that the commitment in CPEC is real and long term and has tied Pakistan and China together into a common development path. They are kind of just “waiting” to be called IMO. The size of investment is a good reflection as you don’t just find $15b out of blue. Pakistan new leadership has done a great job to seize the sentiment and opportunity.

Equally China is more than happy to see KSA and UAE investment as there are more strength with more partners.

With regards to the refinery, this is the area where KSA and UAE have the most expertise and the refineries will be built to supply the incoming manufacturing industry around and a booming economy in Pakistan. Judging by the $5-7b investment and a average construction cost of modern refineries at about $2500 bbl/d, th new refinery will probably have a full capacity of 200,000-250,000 bbl/d if not more, which is a large refinery in the world standard. The refineries that are uneconomical are the old and have 100k bbl/d less capacity. The new refinery will enjoy the proximity with oil field and demand center and higher margin with the latest extraction technology.

 

[SMC]

Commiserations to the following:

@SunilM @maithil @Ryuzaki

Hopefully I haven't missed anyone.

 

[AZADPAKISTAN2009]

Sunil should jump of the bridge if he had any self respect or die posting more anti Pakistan threads

 

[Hakikat ve Hikmet]

All thanks to Uncle Trump who has made it amply clear through his speeches, tweets, body languages etc. no more of “fooling” the white male folks- be it foreign allies, domestic liberals, Deep State or anybody else!!! No money no honey for anyone!!! Even it means closing down the federal government sine die!!! Just to note, White male folks are all armed to the teeth and are ready to bring everything down if not paid up to their satisfaction!!! Hodri Meydan....

 

[nahtanbob]

there is if you account in for the oil that will be exported to China. Pakistan's oil needs are tiny compared to the oil demand from China and SCS is becoming too hot and takes too long for China to wait for the oil to reach it. These refineries will give 2 advantages...faster oil supply to China AND no fear of a hostile blockade of oil supply.

you are expecting china to depend on economically weak state like pakistan

 

[GumNaam]

you are expecting china to depend on economically weak state like pakistan

you'd be surprised at how nonexistent our weakness is.

 

[nahtanbob]

This is a fantastic news. There have been many rumors about massive investment from KSA and UAE since the inception of CPEC but it is great to see large investment from these two nations, which is a vote for confidence in Pakistan’s future economy.

I think KSA and UAE have been watching closely over the last few years on CPEC on the depth and scale of commitment from China in Pakistan. While they are loaded with capital and have the genuine desire to help, they are quite conscious that they are not capable (both financially and technically) of uplifting a country Pakistan by themselves. They just simply cannot become the lead investor in such a country level venture but they can be a smaller investor (relatively) and are keen to get involved. The firm and massive commitment from China and the progress so far have convinced them that the commitment in CPEC is real and long term and has tied Pakistan and China together into a common development path. They are kind of just “waiting” to be called IMO. The size of investment is a good reflection as you don’t just find $15b out of blue. Pakistan new leadership has done a great job to seize the sentiment and opportunity.

Equally China is more than happy to see KSA and UAE investment as there are more strength with more partners.

With regards to the refinery, this is the area where KSA and UAE have the most expertise and the refineries will be built to supply the incoming manufacturing industry around and a booming economy in Pakistan. Judging by the $5-7b investment and a average construction cost of modern refineries at about $2500 bbl/d, th new refinery will probably have a full capacity of 200,000-250,000 bbl/d if not more, which is a large refinery in the world standard. The refineries that are uneconomical are the old and have 100k bbl/d less capacity. The new refinery will enjoy the proximity with oil field and demand center and higher margin with the latest extraction technology.

Saudi Arabia needs to create jobs in Saudi Arabia for Saudi nationals. the best way is to setup oil refineries.
they have a comparative advantage no one can beat.

I am not in planning and commission team... there are always direct and indirect job Ac... indirect will be a lot more than direct ... from food to transport to housing ...

You are such a hater... Pakistan will exist and will one day take you down ...,there is no place for haters in this world

oil refinery employs 2000 people - direct employment. you are spending $5 billion to create 2000 direct jobs. if that is not a misuse of capital i do not know what is. pakistan could use one more refinery. i do not see economic activity to justify two refineries.

What you think why saudis and Emiraties ard so keen to invest in an oil refinery in Gawadar ?
They are known for their sounc business minded approach.
You think they are investing 10-15 billion $$ without realising actual prospects of the project ??

And why they need an oil refinery at Gawadar and not in karachi ?
The answer is.. chinese market .
After meeting pakistani demand, they can also sell their products to chinese, under CPEC umbrella it will be easier.
And last but not least, Pak needs more oil refineries to secure its fuel supplies (finished products) and stockpiles in case of any war or blockade.

i will wait to see concrete proposals from KSA and Emirates. it is possible pakistani politicians are blowing hot air.

 

[Hakikat ve Hikmet]

All thanks to Uncle Trump who has made it amply clear through his speeches, tweets, body languages etc. no more of “fooling” the white male folks- be it foreign allies, domestic liberals, Deep State or anybody else!!! No money no honey for anyone!!! Even it means closing down the federal government sine die!!! Just to note, White male folks are all armed to the teeth and are ready to bring everything down if not paid up to their satisfaction!!! Hodri Meydan....

you'd be surprised at how nonexistent our weakness is.

Arkadash-im!!! You’re beating the shadows!! They have no clue about the ramifications of Iman...

 

[Samlee]

WHERE ARE THE AYATUUUUUUUUUUUUUULAHs now ?


Come you soldiers or Iran, where are you beating yourself up now looking at these horrific news ?

I Think Iran Will Definitely Want To Better It's Offer Now

I do not see Pakistanis needing two large oil refineries unless you become a South Korea overnight.

Investing in oil refinery to meet domestic needs is one thing. Pakistan has an oil refinery.
https://en.wikipedia.org/wiki/Pakistan_Refinery

Oil refineries require huge capital outlays. It generates few jobs. it is a low margin business.

As far as Indian exports of refined petroleum products it is a small percentage of overall production. their domestic market is huge.

Refinery Means Naphtha Naptha Means Olefins And Olefins Means Hundreds Of Downstream Industries

 

[Village life]

People often confuse that trade deficit is because of Pakistan buying things that are not needed however the reality is exact opposite,

The following product groups represent the highest dollar value in Pakistan’s import purchases during 2017. Also shown is the percentage share each product category represents in terms of overall imports into Pakistan.

1. Mineral fuels including oil: US$13.7 billion (23.9% of total imports)
2. Machinery including computers: $6.9 billion (11.9%)
3. Electrical machinery, equipment: $4.7 billion (8.3%)
4. Iron, steel: $3.4 billion (6%)
5. Vehicles: $2.7 billion (4.6%)
6. Organic chemicals: $2.4 billion (4.1%)
7. Animal/vegetable fats, oils, waxes: $2.4 billion (4.1%)
8. Plastics, plastic articles: $2.3 billion (4%)
9. Oil seeds: $1.4 billion (2.4%)
10. Vegetables: $981.2 million (1.7%)

Pakistan's major import is Oil, other than that is the machinery that is being imported to set up industrial units in CPEC related projects and special economic zones. So we cant reduce any further imports, its the exports that are far less than our potential.

Sir we can reduce our import bill by cutting the import of luxury cars, animal fat, oil seed, and vegetables, it is shame for a agricultural country to import veggies giving away precious forex and specially that to India, by just tightening local monitoring we can control prices of basic commodities without importing them, and by doing this we can save 5 to 6 bilion USD annually, without begging from around the world ,

 

[Sinnerman108]

I Think Iran Will Definitely Want To Better It's Offer Now




Refinery Means Naphtha Naptha Means Olefins And Olefins Means Hundreds Of Downstream Industries

YESSSSSSSSSSSSSSSSS

Downstream is name of the game ..

 

[Path-Finder]

The biggest conundrum is bureaucracy, The bureaucratic hurdle needs to be resolved immediately. start chopping hands off all those who serve tooi and zaleeldari. They are working actively to sabotage things. Try them under article 6 because they are not serving their nation but rather serving their khabees masters.

 

[CHACHA"G"]

The biggest conundrum is bureaucracy, The bureaucratic hurdle needs to be resolved immediately. start chopping hands off all those who serve tooi and zaleeldari. They are working actively to sabotage things. Try them under article 6 because they are not serving their nation but rather serving their khabees masters.

What happened ???????????? Kuch nikla bhi visit say...……….. ??? Is there Any good news ? ……..

 

[Maxpane]

nothing came out

 

[maverick1977]

Saudi Arabia needs to create jobs in Saudi Arabia for Saudi nationals. the best way is to setup oil refineries.
they have a comparative advantage no one can beat.



oil refinery employs 2000 people - direct employment. you are spending $5 billion to create 2000 direct jobs. if that is not a misuse of capital i do not know what is. pakistan could use one more refinery. i do not see economic activity to justify two refineries.



i will wait to see concrete proposals from KSA and Emirates. it is possible pakistani politicians are blowing hot air.

You are an idiot. Are you in planning commission of Pakistan. Refinery is not like a video game, where you click and refinery is up and running. it will take years to complete it. and this is based on projections on how the economy will grow... this is my last reply to a person like you. you are not worth my time.