By an OGJ Online Correspondent
KARACHI, Feb. 22�Pak Arab Refinery Co. Ltd. (Parco) has awarded China Petroleum Engineering & Construction Corp. a letter of intent to build a 26-in., 817-km products line from its refinery at Mehmood Kot in Punjab province to Karachi's Port Qasim.
The $480 million pipeline is expected to enter service by December 2002. A joint venture, Pak Arab Pipeline Co., is implementing the project. Parco owns 51%, Shell Pakistan Ltd. 26%, Caltex Pakistan 11%, and Pakistan State Oil 12%.
The pipeline could move 12 million tonnes/year. Drag reducing agents could increase that to 18 million tonnes/year.
The pipeline would carry multiple products and would replace the existing pipeline, which would be converted to carry crude.
