Flow Petroleum acquires TransAsia’s oil refinery in Pakistan
Flow Petroleum Private Limited (FPPL) has signed a memorandum of understanding (MoU) to acquire TransAsia Refinery Limited, a 120,000-barrel-per-day oil refinery being built in Karachi, Pakistan. TransAsia Refinery Limited is a joint venture between Al Ghurair Investment (AGI) based in the United Arab Emirates (UAE) and local businessmen to relocate an old refinery to Karachi.
The MoU was signed by Flow Petroleum CEO Muhammad Waris and TransAsia Refinery Limited CEO Sultan Al Ghurair. The amount of the transaction was not disclosed.
The refinery is being built on 200 acres of land at Port Qasim Authority in Karachi. TransAsia Refinery first announced its oil refinery project in 2013.
The following milestones have already been achieved:
- An Engineering, procurement and construction (EPC) contract has been finalized with a Chinese firm;
- Complete machinery with spares available are on the site and ready for assembly;
- The Environment Study and Impact Assessment, conducted by Hagler Bailly, has been approved by the Sindh Environmental Protection Agency (EPA);
- An Expression of Interest (EOI) to offer financing has been received from a German export credit agency (ECA).
The timing of the transaction coincides with the soon-to-be-released draft “Refinery Policy” which will offer benefits such as a 20-year tax holiday, import price parity and price adjustment to support the construction of an oil refinery in Pakistan.
Flow Petroleum said this refinery “would synergize the operational efficiencies and enhance the commercial viability for FPPL by structuring end-to-end solution” for the oil marketer. The company said it is looking to start up operations in due course.
Flow Petroleum Private Limited was launched by a business group called Aslam Oil Traders, a distributor of a comprehensive range of petroleum products since the 1980s. Flow Petroleum was established in February 2017, with its registered office in Lahore, under the Securities and Exchange Commission of Pakistan.
Being a new entrant in the field of oil marketing, Flow Petroleum is establishing its presence and reputation as a progressive and dynamic organization, focusing on providing quality petroleum products and services in Pakistan. Flow Petroleum is also determined in expanding its market share. The company is developing a network of modern petrol pumps in Pakistan. It is contributing to the development and expansion of the petroleum sector in Pakistan by developing infrastructure for storage, handling and delivery of petroleum products.
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