Pakistan-based conglomerate Ameer Group has awarded a $4.67bn engineering, procurement and construction (EPC) contract to China-based Dalian Petrochemical (DPC) to build a new deep conversion oil refinery in the Sindh province for Pakistan State Oil (PSO).

DPC is a subsidiary of China Energy Engineering Corporation (CEEC).

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The PSO refinery will be constructed in Larkana, Sindh, and will have a daily production capacity of up to 400,000 barrels of oil.

The refinery will be able to process 90% of the imported crude oil through Karachi with 10% local crude oil sourced from several oil wells in Karak district.

The petroleum products produced from the full conversion process will meet with the EURO-II specifications and will be primarily sold.

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Ameer Group vice president Syed Ali-Ayaan Ameer Bhutto said: “This new state-of-the-art oil refining complex will have its independent 1000-Mega Watt power generation plant, 11.8 million metric tons storage facilities all across Pakistan and 700 plus kilometers network of oil pipe lines.”

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The construction of the refinery is likely to be completed in 30 months after commencement of the project work.

Besides a crude distillation unit, the refinery will feature a naphtha hydrotreater unit, a reformer unit, an isomerization plant, a thermal gas oil unit, an effluent treatment plant and all auxiliary units.

CEEC vice president Yu Gang said: “As the strong backup for DPC, CEEC is willing to provide convenience and support while at the same time implement supervision and provide guidance.

“CEEC and DPC will insist on the scientific, high efficient, concise and modest philosophy to utilise resources, make technical planning and solution and strictly execute the contract to build the project into a demonstration of China-Pakistan cooperation.

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 Image: The PSO refinery will be constructed in Larkana, Sindh. Credit: LEEROY Agency from Pixabay.