Reko Diq Investment Deal Near Completion
$10bn Refinery Project Under Consideration
ISLAMABAD: The government is finalizing a new blended gas pricing mechanism aimed at reducing power costs by merging liquefied natural gas (LNG) pricing with wellhead and pipeline gas. This will ensure competitive rates across all consumer categories, as disclosed by Petroleum Minister Dr. Musadik Malik.
Speaking to the media, Dr. Malik revealed that a major investment deal on the Reko Diq mining project is at an advanced stage. Additionally, the government is considering establishing a $10 billion greenfield refinery for petroleum and petrochemicals production on a 50:50 partnership basis.
Addressing concerns over a high-speed diesel (HSD) supply crisis affecting refineries, the minister assured a full investigation into reports of preferential import orders harming the Pakistan State Oil (PSO) and local refineries.
The blended gas pricing plan, expected to be finalized within months, would lower power costs for LNG-based power plants. By merging LNG with natural gas, the cost of electricity from these plants could drop significantly, offering relief to various economic sectors.
Story by Khaleeq Kiani
