CRUDE OIL PIPELINE REQUIRES 10 BILLION DOLLARS INVESTMENT

CRUDE OIL PIPELINE REQUIRES 10 BILLION DOLLARS INVESTMENT

The Frontier Works organization (FWO) and overseas investors have anticipated an investment of $10 billion in laying a crude oil pipeline from Gwadar to Kashgar that will have a transmission capacity of 1,000,000 barrels per day.

Gwadar is quite close to the Persian Gulf from where nearly 40% of the world’s crude passes.
according to officials, China meets 50% of its oil demand through imports from the middle East. Oil supplies come through Dubai-Shanghai-Urumqi route by covering a distance of around 10,000 kilometers.

Crude oil may be supplied through the shortest possible Dubai-Gwadar-Urumqi route – a distance of about 3,600km. this may be done by laying an oil pipeline through the energy corridor up to western China through Karakoram highway and Khunjerab pass.

Hurdles in the way like high altitude, freezing temperatures, and rough terrain can be overcome with the help of advanced technology.

many countries have successfully completed similar pipeline projects underneath extreme conditions and at high altitudes such as the Atacama gas pipeline, trans-Alaska pipeline, and trans-Asia gas pipeline.

The federal cabinet, in its recent meetingwas informed that engineering company FWO, in cooperation with private-sector foreign investorswanted to build a crude oil pipeline from Gwadar (Pakistan) to Kashgar (China) and had requested the Petroleum department to sign a memorandum of agreement that would assure the traders that Pakistan government would not take over the planned investment.

The Frontier Works organization (FWO) and overseas investors have predicted a investment of $10 billion in laying a crude oil pipeline from Gwadar to Kashgar a good way to have a transmission capacity of 1,000,000 barrels in keeping with day.

The provisional capacity of the oil pipeline will be 1,000,000 barrels per day that may be superior further at a later levelmoreoverfee water residence Coopers audit and consulting services enterprise have showed the viability of the challenge for securing required funding of $10 billion.

a proposal in this regard has been sent to planningdevelopment, and Reform, defense, and Finance Divisions for their perspectives. The law and Justice department have already encouraged a summary. Approval was also solicited for signing the memorandum of agreement with the FWO.

during the course of discussion in the cabinet meeting, it was mentioned that preamble to the memorandum of agreement had stated the Ministry of energy (Petroleum department).

The cabinet considered the summary for signing the memorandum by the FWO and the Ministry of energy (Petroleum department) and accorded its approval.

The pipeline will run from Gwadar Port to western China and will allow Beijing to diversify and step up imports of crude oil. Former prime minister Nawaz Sharif had floated the idea of constructing the oil pipeline during a trip to China.

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