By an OGJ Online Correspondent
KARACHI, Sept. 14 -- Shareholders of Shell Pakistan Ltd. have approved the investment of $32 million for a 26% interest in Pak Arab Pipeline Co. (Pvt.) Ltd., which plans to build the $480 million white oil pipeline project.
Pak Arab Refining Co. had invited Shell Pakistan, Caltex Oil (Pakistan) Ltd., and Pakistan State Oil Co. to invest in the project through PAPCO. It had offered SPL a 26% share, Caltex 11%, and PSO 12%.
The 817-km, 26-in. pipeline will carry products to Port Qasim (the designated new port for imports of petroleum products) to Mehmood Kot, serving northern Pakistan with products.
The initial design capacity of the pipeline is 5 million tones/year. Project sponsors said the line is critical to Pakistan, as the existing white oil pipeline has been converted to move crude oil to PARCO's recently commissioned refinery at Mehmood Kot near Multan.
The $886 million, 100,000-b/d refinery started up earlier this year (OGJ Online, Feb. 13, 2001).
