In This Post
About Pakistan’s Largest oil City
About Aramco Oil Refinery
Other Projects In Gwadar
Over the past decade, the port city of Gwadar has witnessed tremendous growth as far as real estate development is concerned. Projects like Marine Drive, Canadian City and Gwadar Golf City have attracted the attention of investors across the country as well as abroad. The Gwadar Development Authority (GDA), the government body that regulates land use in the city and monitors all the developments in the city, has launched a plethora of infrastructure and property projects, most of which fall under the China-Pakistan Economic Corridor (CPEC). Ever since China started showing interest in the port city, the entire Gwadar District in Balochistan has become the centre of attention for real estate developers and investors in Pakistan. As part of the Pakistani government’s plan to develop Gwadar District, officials have announced a masterplan for Pakistan’s largest oil city, including a $10 billion oil refinery project by Saudi Arabia’s Aramco, is in the works and expected to be ready before the end of this year.
Here is what we know about it so far.
Details Of Pakistan’s Largest Oil City
Since the project is still in its planning phase, not many details have been released yet. It includes the development of a masterplan for Pakistan’s largest oil city and a $10 billion Aramco oil refinery. The delivery of the masterplan, according to the Director General of Gwadar Development Authority (GDA), as quoted by a Pakistani newspaper, will take about six to seven months.
The city is being planned on an area of 88,000 acres in Gwadar District. For this project, the federal government is working in liaison with the government of Saudi Arabia. Once the project planning is complete, Saudi officials will be invited to review the drafted plan. The mega oil city is expected to be just as big as “Gwadar Smart City,” the masterplan for which was also drafted by GDA and approved in December 2020.
The smart city will feature science and technology parks, beach resorts, exhibition centres and shopping malls. Moreover, the smart city will also create ample job opportunities, which will help the country’s economy grow massively by 2050. The development of the country’s largest oil city is also going to be a turning point in the history of Pakistan’s economy as it will provide a platform to refine and process different petroleum products, which will be used locally as well as sold in the region.
About Aramco Oil Refinery
After Gwadar Free Zone, the development of an oil refinery in the Gwadar district will be beneficial not only for the country but also for investors since they can easily access the entire region from a central location. Here are some more details about the Aramco oil refinery included in the masterplan Pakistan’s largest oil city:
- The total cost that will be incurred on the building the facility will be $10 billion
- The total capacity of the refinery will be 250,000 to 300,000 barrels per day
- After the plan is finalized, the refinery will be commissioned in 5 to 6 years
- The construction of a petrochemical complex is also included in the project. This complex will build the foundations for petrochemical industry in Pakistan and produce polyethylene and polypropylene
Other Projects In Gwadar
It is not a secret that Gwadar is a gold mine for Pakistan through which the country is seeking huge investments. The agreement for building an oil refinery was signed in 2019 during the visit of Saudi Crown Prince Mohammad Bin Salman and Aramco was one of the players to invest in Pakistan. During this visit of the crown prince, seven investment deals in different sectors worth $21 Billion were signed. These sectors were:
- Minerals
- Energy
- Petrochemical
- Food and agriculture
At present, there are three projects under construction in Gwadar simultaneously. The authority is confident that all three projects will be completed in the year 2023. These projects are:
- Industrial zone
- Coal-fired power plan
- Desalination plant
The industrial zone is expected to attract significant investment to Gwadar District. Efforts to provide basic utilities to the industrial zone, like the provision of electricity, are being made. Moreover, the regulatory framework has also been prepared to allocate lands and only the allotment of land is remaining.
Similarly, a 300MW coal-fired power plant is also a work in progress. The desalination plant will provide clean water to people. The desalination capacity of the plant will be 5 million gallons per day.
In November 2020, the provincial government of Balochistan also inaugurated Gwadar Cricket Stadium, pictures of which left the world speechless earlier this year.
Investors are already keenly eyeing real estate trends in Gwadar to rake in high returns in the coming years. Make sure to read our overview of the latest updates on the game-changing real estate market of Gwadar.
Stay tuned to Zameen Blog to keep yourself informed about the progress of Pakistan’s largest oil city.
