Ground Breaking Ceremony of PAPCO’s White Oil Pipeline Mogas Project

On December 22nd 2017, PAPCO held its ground breaking ceremony of White Oil Pipeline Mogas Project (WOPMP) at Port Qasim Station. Then Prime Minister of Pakistan, Mr. Shahid Khaqan Abbasi performed the unveiling of the plaque to conduct the ground breaking of WOPMP. Chief Minister of Sindh, Mr. Syed Murad Ali Shah, the Federal Secretary of the Ministry of Energy (Petroleum Division) and Chairman PAPCO Board, Mr. Muhammad Jalal Sikandar Sultan, Special Assistant to the Prime Minister, Mr. Ali Jahangir Siddiqi, CEOs of Joint Venture Partners and representatives of leading oil & gas companies of Pakistan were among the prominent guests on the occasion.

Pak-Arab Pipeline Company Limited (PAPCO) plays a pivotal role in the High Speed Diesel supply chain in Pakistan, providing the strategic infrastructure to transport HSD from Karachi to up-country. PAPCO has the shareholding of PARCO 51%, Shell Pakistan Ltd. 26%, Pakistan State Oil 12% and TOTAL PARCO Marketing Limited 11%.

In order to increase the capacity utilization of the pipeline, PAPCO decided to utilize its existing line for transportation of Motor Gasoline. White Oil Pipeline Mogas Project (WOPMP) is a strategic nature project in which PAPCO intends to convert its existing 26″ dia, 786 km long White Oil Pipeline (WOP) for multi-product use. The project involves construction of new HSD, Mogas storage tanks and gantries for product delivery along with Transmix Processing Facility. After completion of WOP Mogas project, storage of 255,000 Tons will be added in to the system.

In his welcome speech, PAPCO Chairman, Mr. Muhammad Jalal Sikandar Sultan said that WOPM is meant for augmenting Pakistan’s energy infrastructure and streamline its oil logistics. He said that the project has immense socio-economic and strategic benefits by way of cheaper, safer and faster transportation of fuel, reduced road maintenance and congestion, fewer accidents, and lower levels of environmental pollution, leading to savings in health costs which will continue to be repeated for decades to come.

Speaking on the occasion, then Prime Minister of Pakistan said that the 786 kilometers long strategic project will strengthen the economic growth of the country. He expressed the hope that the project involving multi-grading of the oil pipeline will be completed on time by 2019. He mentioned that two tankers leave the storage facility at the port every one minute, and the utilization of the oil pipeline will reduce the load on roads. He said that efforts are also under way to upgrade the fleet of the country’s 10,000 tankers and make them safer. Mr Abbasi was hopeful that with full utilization of this oil pipeline, the cost of transportation will drop by Rs. 1.5 to 2 per litre.

Mr. Shuja Uddin Ahmed, CEO PAPCO, thanked the Prime Minister for his presence on the occasion and said “it is a source of immense encouragement”. While presenting the project brief he stated that PAPCO invested nearly US$134 million towards building and streamlining the country’s energy-related infrastructure and the Pipeline is contributing over Rs. 115 billion in terms of savings for consumers.