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 a $432 million return on investment for a proposed 437km Faisalabad-Peshawar white oil pipeline within four years, facilitated by a guaranteed transportation tariff. The tariff is projected at $64 per tonne for the first year, to gradually decrease to $14.5 per tonne by 2058. Ogra has reviewed the 3,033-page tariff petition, along with related documents, before formally endorsing the tariff, which has been approved by the Economic Coordination Committee and cabinet to meet Socar's requirements.
The project, which would link Faisalabad, Thalian, and Tarujabba, is estimated to have a 55:45 debt-to-equity ratio and is considered vital for national and strategic reasons. It aims to transport petrol and high-speed diesel from Gatti in Faisalabad to Tarujabba, completing a pipeline backbone from Karachi to Peshawar. The project is anticipated to boost petroleum demand, reduce fuel shortages, and improve reliability and safety of supplies to northern Punjab and Peshawar, while lowering carbon emissions.
The pipeline is projected to rely on local resources and generate dollar-linked returns for investment recovery within four years. The proposed pipeline is to be developed through a joint project company involving Socar, FWO, and PSO.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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