Oil, Gas and Refinery Sectors - updates

[mythbuster]

They were asking for sales tax exemption on capital goods for the refinery upgrade project which had made the whole brown field refinery policy ineffective.

Once the upgrade happens which will make these refineries deep conversion type in about 4-5 years, they will be able to convert most of the crude into positive margin products instead of 30-40% RFO.

This will also spur (hopefully) downstream industries like polypropylene manufacturing and pharma API production.

What you are saying is partially correct , HSD and gasoline products being imported don't pay sales tax on their inputs.... Google zero rating taxes to understand what I am saying.

 

[Bilal]

What you are saying is partially correct , HSD and gasoline products being imported don't pay sales tax on their inputs.... Google zero rating taxes to understand what I am saying.

That’s a distortion. it should have been addressed. This is the same case with textile value chain.

But that’s odd as there is now VAT regime in all gulf countries. Of course it might be lower or may fall in exempt category.

 

[Fatman17]

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

 

[hydrabadi_arab]

Pakistan's plans to expand its oil transportation network received a boost this week as the Special Investment Facilitation Council (SIFC) announced progress on the Machike–Thallian–Tarru Jabba White Oil Pipeline (MTT-WOP), a major infrastructure project intended to strengthen the country's fuel supply chain and reduce dependence on road-based transport.

The project is expected to move closer to execution after SIFC facilitated approvals from multiple ministries and government departments, helping remove procedural hurdles that had delayed progress.

Stretching 477 kilometres from Machike near Lahore to Tarru Jabba near Peshawar, the pipeline forms part of a broader effort to create a more integrated and energy-efficient petroleum transportation system linking southern supply sources with consumption centres in northern Pakistan.


Officials view the project as a strategic addition to the country's existing white oil pipeline network, which currently transports petroleum products from Karachi to Machike. The new corridor would effectively extend that network further north, creating a continuous route for the movement of Motor Gasoline and High-Speed Diesel towards Khyber Pakhtunkhwa.

The reliance on oil tankers for transporting fuel to northern parts of the country has long been viewed as costly, inefficient and vulnerable to disruptions. By shifting a larger share of fuel movement to pipelines, authorities expect to reduce transportation costs, improve operational safety, minimise product losses and enhance the overall reliability of fuel supplies.

According to SIFC, the project has remained on its priority agenda since the signing of a Memorandum of Understanding under its platform. The council said its engagement with stakeholders helped facilitate the approvals required to advance the scheme and underscored its role in coordinating investment and infrastructure initiatives across government institutions.

The pipeline will comprise two segments: Machike–Thallian and Thallian–Tarru Jabba. Running largely alongside the motorway network, the route will also provide potential connectivity to Attock Refinery, Chakpirana and Faqirabad, expanding integration across Pakistan's petroleum infrastructure.


The development is being spearheaded by the Frontier Works Organisation (FWO) through Frontier Oil Company (FOC), the special-purpose company established for the project. The consortium was formed through a partnership involving FWO, Pakistan State Oil (PSO) and Inter-State Gas Systems (ISGS).

Adding an international dimension to the venture, Azerbaijan's state-owned energy company SOCAR holds a 25% stake in Frontier Oil Company, reflecting growing foreign participation in Pakistan's energy infrastructure sector.

SIFC said the progress achieved on the White Oil Pipeline demonstrates how coordinated facilitation can help unlock investment and accelerate projects considered critical to economic development, energy security and long-term infrastructure expansion.

 

[hydrabadi_arab]

Another game changer project

 

[Fatman17]

Pakistan's plans to expand its oil transportation network received a boost this week as the Special Investment Facilitation Council (SIFC) announced progress on the Machike–Thallian–Tarru Jabba White Oil Pipeline (MTT-WOP), a major infrastructure project intended to strengthen the country's fuel supply chain and reduce dependence on road-based transport.

The project is expected to move closer to execution after SIFC facilitated approvals from multiple ministries and government departments, helping remove procedural hurdles that had delayed progress.

Stretching 477 kilometres from Machike near Lahore to Tarru Jabba near Peshawar, the pipeline forms part of a broader effort to create a more integrated and energy-efficient petroleum transportation system linking southern supply sources with consumption centres in northern Pakistan.


Officials view the project as a strategic addition to the country's existing white oil pipeline network, which currently transports petroleum products from Karachi to Machike. The new corridor would effectively extend that network further north, creating a continuous route for the movement of Motor Gasoline and High-Speed Diesel towards Khyber Pakhtunkhwa.

The reliance on oil tankers for transporting fuel to northern parts of the country has long been viewed as costly, inefficient and vulnerable to disruptions. By shifting a larger share of fuel movement to pipelines, authorities expect to reduce transportation costs, improve operational safety, minimise product losses and enhance the overall reliability of fuel supplies.

According to SIFC, the project has remained on its priority agenda since the signing of a Memorandum of Understanding under its platform. The council said its engagement with stakeholders helped facilitate the approvals required to advance the scheme and underscored its role in coordinating investment and infrastructure initiatives across government institutions.

The pipeline will comprise two segments: Machike–Thallian and Thallian–Tarru Jabba. Running largely alongside the motorway network, the route will also provide potential connectivity to Attock Refinery, Chakpirana and Faqirabad, expanding integration across Pakistan's petroleum infrastructure.


The development is being spearheaded by the Frontier Works Organisation (FWO) through Frontier Oil Company (FOC), the special-purpose company established for the project. The consortium was formed through a partnership involving FWO, Pakistan State Oil (PSO) and Inter-State Gas Systems (ISGS).

Adding an international dimension to the venture, Azerbaijan's state-owned energy company SOCAR holds a 25% stake in Frontier Oil Company, reflecting growing foreign participation in Pakistan's energy infrastructure sector.

SIFC said the progress achieved on the White Oil Pipeline demonstrates how coordinated facilitation can help unlock investment and accelerate projects considered critical to economic development, energy security and long-term infrastructure expansion.

Source is dubious

 

[Bilal]

Source is dubious

This project has been announced “started” for years if not a whole decade. Including announcements that Azerbaijan is going to build it a couple of years ago.

 

[ghazi52]

Iranian oil option returns for Pakistan​

Aamir Shafaat Khan
June 26, 2026

KARACHI: Pakistan could once again tap Iranian crude oil supplies following a temporary easing of US sanctions on Tehran, reopening the possibility of sourcing discounted crude and refining it locally to produce higher-value petroleum products.

While industry experts say local refineries are technically capable of processing Iranian crude, commercial and operational challenges remain, particularly due to the high furnace oil yield and the absence of significant domestic demand for the fuel.

Pakistan Refinery Ltd (PRL) had previously imported Iranian crude under a long-term contract with the National Iranian Oil Company, but purchases halted after US sanctions were imposed. Since then, no Iranian oil has been imported into the country.

Commenting on the prospects for refining Iranian crude oil, a former head of a leading refinery in Karachi told Dawn that the scenarios are changing and sanctions are being lifted temporarily. The outcome remains uncertain over the next two months.