White Oil Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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White Oil Pipeline is an oil pipeline in Pakistan.

Location

The pipeline originates at Port Qasim and terminates at Mahmood Kot, Pakistan.

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Project details

• Operator: Pak-Arab Refinery Limited (51%), Shell (26%), Pakistan State Oil Company Limited (12%), Total SA (11%)
• Capacity: 100000 barrels per day
• Length: 786 kilometers
• Status: Operating
• Start year: 2005

Background

The White Oil Pipeline is an oil pipeline extending from Port Qasim to the Pak-Arab Refinery (PARCO) at Qasba Gujrat, Multan District, Punjab, Pakistan. The 26-inch pipeline can ship 8 million tons per year of High Speed Diesel, with the potential to increase the capacity to 12 million tons per year, from the southern port to the central regions of Pakistan.

The Pak-Arab Pipeline Company (PAPCO), in which PARCO owns a majority (51%) share, was formed in August 2000, and a ground-breaking ceremony for the construction of the pipeline occurred on 31 May 2001. The primary contractor was China Petroleum Energy Corporation and the sub-contractor was Techno Engineering. Commercial operation commenced on 1 March 2005.

Project Financing

The pipeline cost US$480 million. Local commercial banks including National Bank of Pakistan, Habib Bank Limited, and United Bank Limited, financed US$360 million in project debt, with the remaining US$120 million raised through equity. In August 2003, the European Investment Bank agreed to provide a 15-year US$50 million loan to PARCO for construction of the pipeline.

Environmental Impacts

Environmental experts testified at a public hearing in Karachi on July 30 that the pipeline could cause negative impacts on human health and wildlife.