Active Mixed AidData Chinese Aid

PowerChina pledges to support the Upcountry Deep Conversion Oil Refinery and Crude Pipeline Construction Project

Funder	Sinohydro Corporation Limited
Recipient Organization	Pakistan State Oil
Country	Pakistan
Start Date	Jan 01, 2020
End Date	Sep 18, 2028
Duration	3,183 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`72551`

Grant Description

In April 2018, Power China International Group signed a Memorandum of Understanding (MoU) with state-owned Pakistan State Oil (PSO) to undertake financial and economic feasibility studies under a Public-Private Partnership (PPP) model for the Upcountry (Lahore) Deep Conversion Oil Refinery and Crude Pipeline Construction Project.

According to a 2020 Development Plan from the Pakistan Ministry of Energy, the studies were ongoing, and ownership of the refinery was reported to be split equally between Power China and PSO equally (pg.56).

From 2021-2025, the capital expenditure was estimated to be USD 850 million, however, it is unclear what percentage of that Power China is expected to fund, as the project's planned completion date is 2029.

The project proposal calls for constructing an oil refinery near Lahore with a capacity between 250,000 and 300,000 barrels/day (bpd).

The crude oil pipeline would carry oil and other finished products from Karachi to Punjab, Khyber Pakhtunkhwa, and other parts of the country.

📋 Staff Comments

1. As the estimated capital venture funding recorded '2021-2025', it is possible Power China has already started funding this project. However, as AidData was unable to find any official financial documentation confirming a transaction, this project remains in a Pledge status.

📚 Sources & References

PSO in talks with Power China for new refinery project
Oil
Gas and Refinery Projects update
China's BRI message of progress, peace to world: PM- Says CPEC to enhance regional connectivity
Pakistan
China ink MoU on gas pipeline, refinery
POWERCHINA inks MoU with Pakistan
Energy China to build $3.6 Billion Crude Refinery in Pakistan
Feature: Pakistan's new refinery expansion policy to pave way for sharp reduction in fuel imports
China to build one of the largest oil refinery in Pakistan near Lahore, 2020 Development Plan for Pakistan: Oil and Gas Industry
Lahore Refinery
Pakistan Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.