A major Chinese company has proposed Chinese investment in Pakistan energy sector through a wide-ranging plan covering upstream oil and gas, refinery modernisation, offshore exploration and energy equipment manufacturing. The proposal was presented during a meeting between Petroleum Minister Ali Pervaiz Malik and Shandong Xinxu Group Corporation Chairman Hou Jianxin on Thursday.
According to the Petroleum Division, Hou Jianxin expressed interest in establishing a long-term strategic partnership with Pakistan across the country’s energy value chain. The company said it intends to support efforts to increase domestic hydrocarbon production by improving existing oil and gas fields, expanding drilling services and enhancing production efficiency.
A key component of the proposed Chinese investment in Pakistan energy sector involves upgrading Pakistan’s refineries. The company offered to install a Fluid Catalytic Cracking (FCC) unit that would convert furnace oil into higher-value petroleum products, helping improve refinery efficiency and reduce reliance on lower-value fuel production.
The Chinese delegation also proposed establishing an energy equipment manufacturing facility in Pakistan. The plant would meet domestic industrial requirements while also serving export markets in the Middle East, creating new opportunities for industrial development, technology transfer and employment.
Additional proposals include cooperation in offshore oil and gas exploration, lead mining projects, the establishment of a sulphur processing plant and the development of integrated energy cities along Pakistan’s coastline. These projects would include LNG infrastructure, petroleum storage terminals and petrochemical industries aimed at strengthening the country’s long-term energy capacity.
Petroleum Minister Ali Pervaiz Malik welcomed the proposals, saying the government is reviewing Pakistan’s energy landscape to improve energy security, attract foreign investment and promote value addition. He assured the Chinese delegation of full government support and directed the Petroleum Division to appoint dedicated focal persons to facilitate each proposed project.
The proposed Chinese investment in Pakistan energy sector reflects the expanding economic partnership between Pakistan and China. Officials believe closer cooperation in energy infrastructure, exploration and industrial development could contribute to economic growth, enhance domestic energy production and support the country’s long-term energy transformation.
