Pakistan has approved a proposed $3.5 billion private-sector refinery and storage project in Sindh under the business-to-business (B2B) framework of the China-Pakistan Economic Corridor (CPEC).
The China-Pakistan Economic Corridor Secretariat has endorsed the proposed Falcon Oil Refinery and Storage Complex in Dhabeji, Thatta district, according to officials.
The Board of Investment will now present the project to the Joint Working Cooperation Group of CPEC for further consideration.
The project is being positioned as a major private-sector initiative under CPEC’s second phase, which places greater emphasis on business-to-business cooperation and investment.
100,000-barrel-per-day refinery planned
The proposed Falcon Oils Refinery & Storage Complex is being developed by Falcon Oils (Pvt) Limited and is expected to involve an investment of approximately $3.5 billion.
The project will include a 100,000-barrel-per-day deep-conversion refinery, along with a petroleum storage complex capable of holding around 4 million tonnes of crude oil and petroleum products.
A 50-megawatt captive power plant is also planned as part of the complex.
The refinery is expected to produce Euro-V-compliant petroleum products, potentially helping Pakistan increase domestic refining capacity and reduce its dependence on imported finished petroleum products.
Dhabeji selected for strategic location
The project is planned for Dhabeji in Sindh’s Thatta district, an emerging industrial area near Karachi and its port infrastructure.
Its location is expected to facilitate the import of crude oil as well as the distribution of refined petroleum products to domestic markets.
The Dhabeji area has also been identified for industrial development, including initiatives linked to special economic zones.
Chinese firms involved in technical work
According to project details, the feasibility study was prepared by China’s Xinjiang Petroleum Engineering Design Co Ltd.
Engineering, procurement and construction (EPC) arrangements have also been signed with Chinese engineering groups linked to China Energy Engineering Corporation, including CEEC-GEDI and CGGC.
Falcon Oils CEO Sirhaan Ahmed Khan has publicly confirmed the CPEC Secretariat’s endorsement of the project, describing it as a fully privately sponsored and financed initiative.
