Saudi Arabia to build US$10 billion oil refinery at China-funded Gwadar Port in Pakistan
- Project will make Middle Eastern nation ‘an important partner in the China-Pakistan Economic Corridor’, Pakistan’s Petroleum Minister Ghulam Sarwar Khan says
Saudi Arabia plans to set up a US$10 billion oil refinery at Pakistan’s deep water port of Gwadar, which is being developed with the help of China, the Saudi energy minister said on Saturday.
Pakistan wants to attract investment and other financial support to tackle a soaring current account deficit caused partly by rising oil prices. Last year, Saudi Arabia offered Pakistan a US$6 billion package that included help to finance crude imports.
“Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China-Pakistan Economic Corridor,” Khalid al-Falih told reporters at the Indian Ocean port.
Crown Prince Mohammad bin Salman would visit Pakistan next month to sign the agreement, he said, adding that Saudi Arabia would also invest in other sectors.
Beijing has pledged US$60 billion as part of the China-Pakistan Economic Corridor (CPEC) that involves building power stations, motorways, new and upgraded railways and higher capacity ports, to help turn Pakistan into a major overland route linking western China to the world.
