Shell Pakistan Wednesday said it plans to invest $35-mil in the construction of a 817-km white oil (refined products) pipeline from Karachi's Port Qasim to Pak-Arab's 100,000 b/d refinery and storage
The pipeline will be given the final go-ahead at Shell's shareholders meeting on Sep 10, a Shell spokesman said. The pipeline, scheduled for completion by end-2002, will have a capacity to move 7.9-mil mt/year of high speed diesel and kerosene, he said. At Multan, the pipeline will be connected with another pipeline, which will transport the products to Lahore, he said.
Meanwhile, an existing Karachi-Multan pipeline was converted to carry crude, the Shell source said. "A white oil pipeline is in demand as it will take some of the pressure off the roads for transporting the products," he added. China Petroleum has won the construction contract through international bidding, he added. Parco's $886-mil refinery is a joint venture between the Abu Dhabi and Pakistani governments and was commissioned last year. Parco will take a 51% stake in the white oil pipeline, with Shell holding 26%, Pakistan State Oil 12% and Caltex 11%.