FWO’s white oil pipeline pilots through ECC

ISLAMABAD: The Economic Coordination Committee (ECC) Tuesday abandoned the pipeline proposed by the Inter-State Gas System (ISGS) and approved the white oil pipeline proposed by the Frontier Oil Company — a subsidiary of the Frontier Works Organisation (FWO).The ECC that met in April 2018 with the then Prime Minister Shahid Khaqan Abbasi had approved the white oil pipeline, proposed by the ISGS, saying it should be laid down by the government entity which was already involved in execution of the proposed TAPI gas line, and North South pipeline.The Frontier Oil Company’s pipeline will consist of three sections — Machike-Chak Pirana, Chak Pirana-Rawat and Rawat-Taru Jabba. The said pipeline will transport High Speed Diesel and Motor Spirit (Petrol).The Frontier Oil Company had managed the construction licence well before from the Okl and Gas Regulatory Authority for laying the white oil pipeline from Machike to Taru Jabba (MTJ), but the Inter-State Gas System didn’t possess a licence. And more importantly, the Frontier Oil Company will have the right of way on its expenses but with the help of government.From Taru Jabba, Peshawar, the company will take the pipeline to other parts of the country and build strategic oil reserves keeping in view the CPEC routes and future economic activities. In the Tuesday’s meeting, chaired by Finance Minister Asad Umar, the Frontier Oil Company’s arguments for laying the white oil pipeline [from Machike to Taru Jabba] prevailed. As a result, the Inter-State Gas Company’s proposal was rejected.The Frontier Oil Company’s representative told the committee that they will construct the pipeline on their own seeking no financial assistance from the government. The committee was further told that the company will even arrange the right of way on its own expenses but with the help of the government. More importantly, it possesses licence for building the pipeline.On the other hand, the Inter-State Gas System had no construction licence and the project was supposed to be constructed under BOOT and its handover time was 15 years.An official privy to the ECC meeting told this reporter that from Machike to Taru Jabba only one white oil pipeline could be laid down, as the demand for oil products in the KP was not on the higher side, so the ISGS’s proposal for white oil pipeline stood rejected.Once laid down, the white oil pipeline [of the Frontier Oil Company] will bring significant savings to the state kitty over the life of project when compared with the prevailing road freight besides ensuring safe and study oil supply from Karachi to Peshawar.In addition, the accrued primary benefits will reduce emission levels, prevent adulteration of products and reduce product loss. The project will also ensure safety by reducing road accidents, congestion on roads because of oil tankers and lower road maintenance cost. It will also provide better security to product supplies for strategic defense needs. In addition, the economy will improve further in future.

from The News International - National http://bit.ly/2TMwcaN