Five international companies have submitted bids for an estimated $200 million-$250 million project to build a pipeline extension from Multan to the north for the local Pak-Arab Refinery (Parco). A contract award is expected by mid-January 1995.
The bidders for the engineering, procurement and construction contract are Italy’s Snamprogetti, Turkey’s Tekfen, the Athens-based Consolidated Contractors International Company (CCC) with the UK’s ABB Global Engineering, the US’ William Brothers and China Petroleum Engineering Construction Company. Negotiations are expected to begin by mid-December.
The pipeline will have an annual capacity of 5 million tonnes, roughly equivalent to 100,000 barrels a day (b/d), and will be an extension of the existing Karachi-Multan pipeline. It will carry finished petroleum products to Parco’s customers in Faisalabad and Lahore, now supplied by road. The project also involves building storage facilities with a capacity of 80,000 tonnes, and pumping stations.
The scheme is part of a plan to build a 100,000-b/d refinery in Multan, which has been delayed pending approval from the Abu Dhabi National Oil Company (ADNOC), one of Parco’s shareholders. A feasibility study for the refinery has been completed by the US’ UOP Management Services (UMS). The plan involves using the existing pipeline for crude oil, and distributing the refined products through the new pipeline. The construction of a second Karachi-Multan pipeline would also be considered (MEED 2:9:94).