RIYADH: Saudi Arabia and Pakistan are poised to strengthen their strategic partnership through discussions on refinery upgrades and a new greenfield project for petroleum products, according to an official.
Speaking to Arab News at the World Investment Conference in Riyadh, Musadik Malik, Senator and Minister of State for Petroleum of Pakistan, highlighted that the collaboration extends beyond energy projects and includes an agreement to connect power grids between the two nations.
“We are working closely with the Kingdom to determine future energy needs, especially in renewables, and together we will identify and scope opportunities, and jointly develop a program to meet those needs,” Malik said.
He added: “We have two projects currently under research. One involves upgrading existing refineries, and the other is a large greenfield refinery that will produce not only petroleum products but also hydrocarbons. These are still under negotiation and not finalized.”
Malik emphasized that the partnership is not just about securing investments or transferring technology; it involves a joint effort to analyze Pakistan’s future energy needs and plan accordingly.
This proactive approach ensures that both nations are planning for long-term energy security, creating a sustainable framework that supports Pakistan’s growth and development.
Saudi Arabia and Pakistan are also making significant progress in strengthening private-sector collaborations, with several agreements already yielding tangible results.
Malik noted the proactive approach both nations are taking to foster business-to-business partnerships, stating, “Our prime minister believes that the government should facilitate business, not do it.”
He added that around $2.8 billion worth of memorandums of understanding were signed in October, with seven or eight already converted into contracts and executed within three to four months.
Malik explained the momentum of the partnership: “We have transacted significant deals, and contracts are in motion. During a recent roadshow with the Kingdom’s private sector, we secured a non-disclosure agreement that could lead to a $1.8 billion investment.”
He described Saudi Arabia’s involvement in Pakistan as a “360-degree view” encompassing both public and private sectors, emphasizing collaboration on long-term strategies to meet Pakistan’s growing energy demands.
Pakistan is addressing the challenge of energy demand fluctuations, a longstanding issue where consumption peaks in summer and drops significantly in winter. To mitigate this, Pakistan signed an MoU with Saudi Arabia to connect their power grids.
“This grid connection will enable seamless energy transactions between the Kingdom and Pakistan, effectively connecting with the GCC as well,” Malik said.
The initiative aligns with regional energy strategies, as Pakistan seeks similar arrangements with Central Asian states, aiming for a unified energy market facilitated by a shared grid.
Malik concluded by praising Saudi Arabia’s steadfast support for Pakistan, describing the Kingdom as a true and loyal ally.
“In good times and bad, we have always found the Kingdom by our side. This is the hallmark of true friendship,” he said.
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