$3.5 Billion Falcon Oils Refinery Project Clears CPEC Hurdle
Pakistan’s Falcon Oils refinery project has cleared a key institutional hurdle under CPEC. The CPEC Secretariat has endorsed the $3.5 billion plan for Dhabeji.The secretariat also asked the Board of Investment to present the proposal. The project will go before the Joint Working Group on Industrial Cooperation.
Major refinery planned in Dhabeji
Falcon Oils plans to build a 100,000-barrel-per-day deep conversion refinery. The complex will also offer four million tonnes of crude and petroleum storage.In addition, the project will include a 50 MW captive power plant. The refinery will produce fuels that meet Euro V standards.As a result, the facility could strengthen Pakistan’s domestic refining capacity. It could also reduce the country’s reliance on imported finished petroleum products.
The proposed site lies in Dhabeji, Thatta district. Its location offers access to Karachi’s port facilities and crude import infrastructure.Therefore, the complex could support crude imports and domestic fuel distribution. It may also improve Pakistan’s energy security through greater storage capacity.According to an August 24 memorandum, Falcon Oils proposed the project as a B2B initiative. The plan also supports the second phase of CPEC.
Chinese firms support project
The project has already secured Chinese technical and engineering partnerships. Xinjiang Petroleum Engineering Design Co. prepared the feasibility study.Meanwhile, CEEC GEDI and CGGC have signed engineering, procurement and construction arrangements. These partnerships could support the project’s development.
Falcon Oils says private sponsors will fully finance the complex. The company also says the project needs no sovereign guarantee.Moreover, sponsors will develop the facility on a non-recourse basis. This means the project will carry no financial recourse for Pakistan’s government.
The project could create thousands of jobs during construction. It could also provide permanent employment in Thatta district.Falcon Oils CEO Sirhaan Ahmed Khan welcomed the CPEC endorsement. He called it an important step toward formal industrial cooperation.If completed, the refinery could add major refining and storage capacity. It would also highlight private investment’s role in Pakistan-China economic cooperation.
