The Fortress News-Views-Analysis
Islamabad: Pakistan and Iran may establish an oil refinery in near future reported by daily express tribune yesterday. A high level source in foreign ministry confirmed the developments saying that Doctor Asim Hussain had discussed a plan of establishing a Iran-sponsored refinery in Baluchistan province. Under the plan, an oil pipeline is to be laid right up to the Gwadar Port, where a crude oil refinery will be set up jointly both by Pakistan and Iran.
The Source told us that the Iranian government made the offer during the visit of the petroleum adviser Dr Asim Hussain to Tehran earlier this month. Tehran has also offered 100,000 barrels per day of crude supply to Pakistan on a long term deferred payment.
Last year Tehran supplied 45,000 barrels of crude oil to Pakistan on a three-month deferred payment plan until January 2011. but Pakistan could not continue the deal due to United Nations sanctions on Iran.
Pakistan Refinery Limited was designed in 1962 to process Iranian oil. But consumption of Iranian oil in Pakistan remained very low and therefore Pakistan Refinery Limited has made modifications. At the present no refinery in Pakistan can process 100% Iranian crude oil. That is Why Pakistan and Iran interested to establish a oil refiner
Tehran offered to provide crude oil on deferred payment to Pakistan as a tool to counter united states pressure because united states is already working to convince the Government of Pakistan to shelve the Iran-Pakistan (IP) gas pipeline project.
