Federal Minister for Petroleum Ali Pervaiz Malik met with Hou Jianxin, Chairman of China's Shandong Xinxu Group, to discuss expanding cooperation and investment opportunities in Pakistan's energy sector, according to a statement issued on Thursday.
Strong Interest in Pakistan's Energy Value Chain
Jianxin expressed strong interest in investing across Pakistan's energy value chain and proposed a long-term strategic partnership. He said Shandong Xinxu possesses advanced technologies in upstream oil and gas operations, including field optimisation, drilling services and production enhancement, and is keen to collaborate in increasing hydrocarbon production in Pakistan.
Refinery Modernisation and FCC Unit
Jianxin also expressed interest in refinery modernisation, particularly the installation of a fluid catalytic cracking (FCC) unit to convert furnace oil into higher-value refined petroleum products. This would help Pakistan reduce its reliance on imported refined products and improve the efficiency of its existing refineries.
Energy Equipment Manufacturing Facility
Jianxin further proposed establishing an energy equipment manufacturing facility in Pakistan to cater to domestic requirements and export markets in the Middle East. Such a facility could create jobs, transfer technology, and boost local manufacturing capabilities.
Offshore Exploration and Other Proposals
Jianxin highlighted the company's expertise in offshore oil exploration and proposed joint collaboration in Pakistan's offshore sector. He also shared proposals for cooperation in lead mining, establishment of a sulphur processing plant, and development of integrated energy cities along Pakistan's coastline.
The meeting signals growing Chinese interest in Pakistan's energy sector, which has faced challenges such as circular debt and underinvestment. The proposed investments could help enhance energy security and economic growth.
