Staff Report
ISLAMABAD:
Byco Petroleum Pakistan Limited has proposed the government to connect its Single Point Mooring (SPM) with White Oil Pipeline via Asia Petroleum Limited (APL) pipeline to significantly expand supply chain infrastructure of the Country for Petroleum Oil and Lubricants (POL).
Byco’s chairman, Mohammad Wasi Khan, in a letter to Federal Minister for Energy, Hammad Azhar, has drawn the attention towards the issue of ports (KPT & FOTCO Jetty at Port Qasim Authority) due to unavailability of Oil Pier 1 at Keamari Terminal, Karachi as raised by the Oil Companies Advisory Council (OCAC). In this regard, he said that the supply chain infrastructure of the country for POL can be significantly expanded by connecting Byco’s SPM with White Oil Pipeline via APL pipeline. And, this objective can be achieved with a nominal capital expenditure and in a short span of time, said Chairman Byco Petroleum Pakistan Limited.
“We believe you will acknowledge the potential in the above proposed scheme for the enhancement in oil supply infrastructure and would give kind attention for its implementation. We are available for any further detail and discussion whenever it is earliest convenient for you, “said Mohammad Wasi Khan in his letter to Federal Minister for Energy, Hammad Azhar.
Byco’s SPM is an offshore jetty installed 12 km in the deep sea where from it receives crude oil directly into the refinery through a subsea pipeline. APL’s 84 km long pipeline is laid between lulfiqarabad Oil Terminal (lOT) near PQA and Hub Power Plant (adjacent to Byco refinery). This pipeline is currently running idle due to Hub Power not being utilized much lately. The distance to connect both facilities (SPM and APL) is barely 500 m and this proposed connectivity is expected to ensure security of energy supplies in all circumstances (peace and emergency) and savings of foreign exchange on account of freight and demurrages.
As per details, Byco Petroleum Pakistan Limited has been successfully running its Single Point Mooring (SPM) facility for about nine (09) years now. The SPM and its subsea pipe line has the capability of handling crude oil as well as POL products. Similarly, the Byco is also in the process of expanding its SPM infrastructure by adding two more SPMs and an additional subsea pipeline which can be dedicated for POL imports.
Earlier, Syed Zawar Haider, Chief Executive Officer, OCAC, in a letter dated 25th May, 2021 to Dr Arshad Mahmood, Secretary, Petroleum Division said that although preventive maintenance of all the Oil Piers while ensuring its operational availability is the sole responsibility of KPT, however, it is surprising that KPT instead of maintaining Oil Pier (OP) in operational and safe working condition, is shifting the responsibility to importers/agents/ship owners by asking for an indemnity bond for unforeseen events. And, this requirement from KPT would have far reaching negative impact in the ‘International Shipping Market’ with limited availability and increased freights when arranging vessels for delivery in Pakistan. Contrary to this request, KPT should be providing assurances for safe berthing operation and indemnify all importers and vessel owners in case of any untoward happening due to the depleted condition of Oil Piers.
CEO, OCAC, on behalf of downstream petroleum companies, has also raised this issue of critical importance which can disrupt the import supply chain of petroleum products especially Crude Oil and Mogas resulting into potential ‘dry-out’ in the country and requested to take up these issues with Ministry of Maritime Affair for urgent resolution and commissioning of OP1 after necessary repairs on urgent basis so as to avoid queuing up of vessels and associated demurrage costs (forex loss).
It is pertinent to note that OP1 is in a deteriorated condition which is being used for berthing in day light only and has been in and out of service every now and then. Oil Pier 3 (OP-3) is out of operation since July 2018. However, fully operational Oil Piers (all three) are vital for the ‘Strategic Energy Security’ of the country.
