Invest in oil refineries of Pakistan.

Byline: Raziuddin (Razi)

There have been articles, statements and interviews that oil and gas is history and Renewable energy such as Solar, Wind are IN. Unsubstantiated and off the cuff articles and statements are detrimental to the economy and society. Once upon a time (2000) there was power MW surplus and unwarranted hue and cry against new power plants lead to load shedding from 2006 to 2018.

Similarly, nowadays over capacity MW statements has made the government shy off from new capacity additions. A few Google hits are no alternate to experience and detail studies. Similar is the case with the refinery business now in Pakistan pseudo experts are pouring in unsubstantiated and off the cuff statements without any homework or expertise. Countries around the globe are spending billions of dollars to upgrade and expand existing refineries and building new grassroot refineries. These countries have done professional homework and then have embarked on establishing new refineries.

Pakistan like all countries needs oil and gas till 2050 for sure, perhaps beyond. Therefore, we cannot pull back from aggressive oil and gas exploration, installation of an equivalent to 200,000 barrels per day refining capacity every 3 years, expanding storage capacity and terminals and pipeline transmission and distribution network footprint needs to be expanded commensurate with supply and demand in an optimal manner so as to avoid low pressure gas syndrome. Also, we still need to build Oil/Gas based base-load mega-power plants (IPPs) in super ultra critical category. We have to do lot of catch up and cannot afford to couch gossip away valuable time and mislead the political leadership.

The Planning Commission needs to play its role and take the lead in national energy planning by developing the Perspective Plan, 5-Years Plans and short term Plans and educate the Policy makers and political leadership to strengthen Pakistan's energy security and make conducive investment environment by make enabling environment.

The bankers, financial institutions and stock brokerage houses need to understand the dynamics of oil refinery business by way of interacting with experts nationally and internationally. DG Oil and OGRA need to play positive role by holding public hearings to educate the general public and media.

Furthermore, OCAC and the refiners need to hold learning conferences and workshops to inform the investors, policy makers, political leadership, regulators and...

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