FWO seeks 4-year payback for $432m Azeri-funded pipeline
• Guaranteed transportation tariff to facilitate Socar participation • Pipeline tariff projected at $64 a tonne • Project to link Faisalabad, Thalian and Tarujabba ISLAMABAD: Supported by the federal government, the Frontier Works Organisation (FWO) has sought recovery of about $432 million in investment in the proposed 437km Faisalabad-Peshawar white oil pipeline within four years through a…
The Frontier Works Organisation (FWO) has requested repayment of approximately $432 million within four years for a proposed 437km white oil pipeline from Faisalabad to Peshawar, funded by Azerbaijan's state oil company, Socar. The pipeline, which will link Faisalabad, Thalian, and Tarujabba, is expected to transport petrol and high-speed diesel, filling a pipeline "backbone" from Karachi to Peshawar.
The tariff for transporting petroleum products on the pipeline is projected to start at $64 per tonne in the first year, 2029, and decrease to $14.5 per tonne by 2058. The 3,033-page tariff petition, along with related documents, has been presented to the Oil and Gas Regulatory Authority (Ogra) for approval, which has already received support from the Economic Coordination Committee and the cabinet.
The project is considered crucial for strategic and national reasons, as it will meet increasing petroleum demand in northern Pakistan, reduce road tanker reliance, and lower carbon emissions.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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