MoU signed on consortium formation for Karachi to Peshawar white oil pipeline

427-km long pipeline aims at ensuring a smooth supply chain of petroleum products from Karachi to Peshawar

ISLAMABAD  -  Stakeholders Wednesday signed memorandum of understanding (MoU) on consortium formation for the construction of 427-kilometre Karachi to Peshawar white oil pipeline project, which will ensure smooth supply of oil, reduce cost and bring a saving of billions of rupees to the national exchequer.

In a landmark achievement, the signing ceremony of MoU between the stakeholders on consortium formation for Machike-Thallian-Tarujabba white oil pipeline project has been held here Wednesday. The ceremony was witnessed by Minister for Power and Petroleum Muhammad Ali, Secretary (Petroleum Division) Momin Agha, Secretary SIFC Jameel Qureshi. The heads of consortium entities i.e. MD Pakistan State Oil (PSO) Syed Muhammad Taha, DG Frontier Works Organization (FWO) Major General Abdul Sami, MD Inter state Gas Systems Pvt. Ltd (ISGS) Nadeem Bajwa signed the memorandum of understanding.

The pipeline project is a testament to the commitment of Petroleum Division and the Special Investment Facilitation Council (SIFC). The Machike-Thallian-Taru Jabba White Oil Pipeline (MTT-WOP) aims to complement the oil pipeline backbone from Karachi to Peshawar apart from achieving the energy efficient movement of petroleum products as well as preventing adulteration and providing increased safety. It will connect Punjab from Machike, near Lahore, to Tarujabba, near Peshawar. The pipeline consists of three segments: Machike-Chakpirana, Chakpirana to Rawat and Rawat to Tarujabba. It completes the infrastructure supply chain from Karachi to Peshawar. This may be called a flagship project spearheaded by FWO and jointly supported by PSO and ISGS. The 427-km long pipeline aims at ensuring a smooth supply chain of petroleum products from Karachi to Peshawar with initial carrying capacity of 6 MTPA. The pipeline shall contribute significantly towards reduction of traffic congestion, environmental pollution and transportation cost.

The project will result in significant saving to the government exchequer and cost reduction for the end consumers over the life of project when compared with the prevailing road freight. The pipeline will ensure smooth supply of oil from Karachi to Peshawar, end the blackmailing of tanker mafia, reduce tankers road accidents and cut environmental pollution.

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