Pakistani conglomerate WAKGROUP has awarded a contract worth $3.58bn to China-based Guangdong Electrical Design Institute (GEDI) to build a new deep conversion oil refinery in the Khyber Pakhtunkhwa province.
The contract given for GEDI, a subsidiary of China Energy Engineering Corporation (CEEC), is for engineering, procurement and construction (EPC) of the Falcon Oil refinery project.
According to the parties, the Falcon Oil refinery, which will be built in Dera Ismail Khan, will have a production capacity of up to 100,000 barrels per day of oil.
The objective of the Falcon Oil refinery will be to process 90% of the imported crude oil via Karachi with 10% local crude oil sourced from various oil wells in Karak district. The subsequent petroleum products produced from the full conversion process will be mainly for sale by complying with the mandated EURO-II specifications.
WAKGROUP chairman Waqar Ahmed Khan said: “This new state-of-the-art oil refining complex will have its independent 100-Mega Watt power generation plant, 3.8 million metric tons storage facilities all across Pakistan and 300 plus kilometers network of oil pipe lines.”
The Pakistani oil refinery is likely to be completed in 30 months after commencement of the project work.
It will feature a crude distillation unit, a naphtha hydrotreater unit, a reformer unit, an isomerization plant, a thermal gas oil unit, an effluent treatment plant and all auxiliary units.
CEEC vice president Yu Gang said: “As the strong backup for GEDI, CEEC is willing to provide convenience and support while at the same time implement supervision and provide guidance.
“CEEC and GEDI will insist on the scientific, high efficient, concise and modest philosophy to utilize resources, make technical planning and solution and strictly execute the contract to build the project into a demonstration of China-Pakistan cooperation."
Image: Signing of the EPC contract between officials of WAKGROUP and GEDI. Photo: courtesy of Falcon Oil.