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PARCO - the symbol of progress and prosperity.

PARCO is also planning to construct a Refinery at Multan. This refinery will have a capacity of 4 million tons per annum and can be brought on stream by 1995-96.

Pak Arab Refinery Limited (PARCO) Pipeline System is transporting petroleum products vital to the nations economic growth and development. PARCO was established in 1974 as a Public Limited Company, on the basis of a Protocol concluded between the Government of Pakistan and the Emirate of Abu Dhabi. Abu Dhabi's shareholding is vested in Abu Dhabi National Oil Company (ADNOC). The affairs of the Company are managed by the Board of Directors having proportionate representation of Government of Pakistan and ADNOC. The Company was formed with the main objectives of constructing, owning and operating petroleum refineries and allied facilities and of constructing, owning operating, maintaining of pipeline systems, storages and other facilities.

As originally conceived, the project envisaged the constructing of a petroleum refinery near Multan and for this purpose to lay a 16 inch diameter underground pipeline from Karachi to village Gujrat near Multan. This pipeline covering 865 kilometers, has been constructed to transport crude oil for the proposed refinery as well as certain refined petroleum products for the Northern areas of Pakistan. The Refinery project, in view of the latest trends of crude and product prices, has been reactivated and studies are being conducted to determine the viability of setting up additional refining facilities in the country.

The pipeline, designed to transport crude oil and petroleum products was established as planned and has been operating since 1981. Substantial quantities of imported and locally refined products are now transported with safety, speed, efficiency, minimal loss and no environmental pollution from Karachi to village, Gujrat, near Multan, for supply to consumers in the North. The pipeline System consists of a 865 km underground 16" diameter oil pipeline, two terminal Stations at Keamari and Gujrat and two intermediary booster stations at Korangi and Shikarpur. In addition, products from the two Karachi refineries, the Pakistan Refinery and National Refinery can be supplied directly to the PARCO system through spur lines. A sophisticated Telecommunications and Supervisory Control System has been installed which provides communication between different locations along the pipeline route and the Master Control Centre located at Korangi. This system also collects data, monitors different operating variables and helps in controlling the entire Operations from a Central Master Control Centre. Another important feature is the Cathodic protection system which provides protection to the Pipeline and stations against corrosive effects of environment to enhance the useful life of the entire system.

The designed capacity of the pipeline to carry a mix of crude and refined petroleum products is 4.5 million tons/annum, which is now being augmented to cater to the full requirements of the refinery project and any other additional requirements of refined products in the Northern areas.

The oil Marketing companies have constructed a terminal at Mahmoodkot about 5 km from village Gujrat near Multan where the products carried by PARCO are received. Pakistan Railways has also participated in constructing double track siding at Mahmoodkot to further transport the products in tank wagons up North.

Economic Benefits

PARCO pipeline systems since its commissioning has transported over 20 million tons of petroleum product up country which otherwise would have been transported through rail and road. Since 1981, PARCO has steadily increased its pumping thru-put from 0.5 million tons per annum to about 2.9 million tons per annum which is expected to increase to 4.5 million tons/year by December, 1992.

PARCO pipeline has helped the nation save millions in foreign exchange through reducing imports of High Speed diesel required by rail and road modes of transportation. This formidable surface transport capacity has now become available for transporting other essential commodities in the country. PARCO pipeline has provided additional petroleum storage capacity of approximately 225,000 metric tons to the advantage of the country. PARCO pipeline system with safety, speed, efficiency, minimal loss and no environmental pollution helps the nation in accelerating and sustaining economic growth and development.

Many other intangible economic benefits are accruing because of the PARCO project. Though difficult quantify these advantages in monetary terms, the uninterrupted supplies of petroleum products to up-country markets for use in the important agricultural and transport sectors and development of backward areas has significantly contributed in boosting the overall economic activity.

The development of PARCO installations at village Gujrat, construction of marketing companies' joint installations and Railways loading facilities at Mahmoodkot in the under-developed District of Muzaffargarh and the other installation at Shikarpur have resulted in the setting up of basic in infrastructure facilities for the benefit of the whole region.

Debottlenecking of Keamari

Facilities (DKF Project)

PARCO was assigned this project by the Ministry of Petroleum and Natural Resources, for releasing congestion in the oil installation area of Keamari harbour and improving oil transportation logistics. The project envisaged the construction of additional 50,000 tons of tankage in PARCO's Korangi station for directly receiving product from the tankers and for further transportation up-country. The project was started in October 1988 and with the assistance of Kuwait Petroleum Corporation, Pakistan State Oil, Pakistan Burmah Shell and Caltex (Pakistan) it was completed within the stipulated time of 16 months and within the approved budget. It was commissioned into service on 15th February, 1990. The spur-lines from NRL & PRL have also been commissioned as part of this project. The DKF Project has provided additional storage capacity of 50,000 MT away from the congested and hazardous area of Keamari. It has increased energy efficiency through elimination of double pumping of millions of tons of HSD and SKO from Refineries to Oil Marketing Companies storage tanks at Keamari and back to PARCO's Pumping Station of Korangi. It has enhanced economic growth due to timely availability of energy products to the end consumer. It has provided the facility of direct unloading of tankers which has resulted in saving in demurrage due to timely berthing of tankers, faster clearance and more effective use of oil piers at Keamari. Some of the Projects of PARCO which are in different stages of implementation are as follows:

Bubak and Fazilpur

Pumping Stations

In order to enhance the transportation capacity of the present pipeline system PARCO is in the process of setting up two intermediary booster pumping stations at Bubak (in Sindh) and at Fazilpur (in Punjab). PARCO pipeline system is currently operating with two pumping stations, the main pumping station of Karachi and a booster station at Shikarpur. Current system's pumping capacity is 2.9 million tons/annum. Once the two intermediary booster stations at Bubak and Fazilpur are commissioned the pumping capacity will increase to 4.5 million tons/annum. This will be a major step towards meeting the increasing requirements of petroleum products in the Northern areas.

The construction of these two pumping stations will not only cater to the increasing requirements of liquid fuels in the Northern areas but will also help in setting up basic infrastructure facilities for the socio-economic development of the surrounding areas and also provide opportunities for employment in the construction as well as operational phases of PARCO project.

Pipeline Extension Project

PARCO is embarking on a project of national significance. It is planning to extend its present 865 km pipeline system by another 350 km from Mahmud Kot to Sheikhupura via Faisalabad. This project will be completed by end of 1993. It will not only relieve rail and road congestion, but will also help in saving millions of rupees spent on repair and maintenance of the country's road network. This project is being put up to cater to the continuously growing needs of these areas and will help in accelerating and sustaining economic growth and development of the under developed areas.

Refinery Project

PARCO is also planning to construct a Refinery at Multan. This refinery will have a capacity of 4 million tons per annum and can be brought on stream by 1995-96. Besides a full range of petroleum products, the Refinery will produce substantial quantities of the much needed Furnace oil for the WAPDA Power Houses near Kot Addu, thus eliminating the expensive logistics of transporting Furnace oil from Karachi. Advanced technology to be adopted in the envisaged processing scheme by PARCO shall ensure greater production flexibility coupled with the inbuilt feature of augmenting capacity at a future date.

The proposed Refinery will bring about sizeable foreign exchange savings. Many other important benefits will accrue such as reduction of costly rail/road movement of petroleum products from South to North and increased utilisation of existing PARCO main trunk line capacity. Thus the Refinery will be a major factor in boosting economic growth and development and also increasing job opportunities in the construction as well as operation stages.

PARCO Projects it is hoped, will trigger a host of commercial and industrial activities, give a boost to the economy of the backward areas and through dispersal of industrial concentration provide new job opportunities to thousands - the avowed objective of the Government of Pakistan.

A project of great national importance, PARCO is a symbol of Islamic brotherhood and a living example of the interest taken in the progress and prosperity of Pakistan by our brotherly emirate Abu Dhabi. The consolidate PARCO's financial and organisational achievements on a continuing basis, following are the long-term corporate objectives inherently embodied in its name: P - Professional Corporate Outlook A - Aggressiveness in technical matters R - Reliability of Service C - Consistency in Performance O - Organised & Systematic Development
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Title Annotation:Pak Arab Refinery Ltd.
Publication:Economic Review
Date:Feb 1, 1992
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