Islamabad: The Frontier Works Organisation (FWO), along with foreign investors have estimated that the total cost of construction for the planned crude oil pipeline from Gwadar to Kashgar will cost PKR 10 billion, according to a news report. The capacity of this pipeline will be one million barrels per day, and can be further enhanced at a later stage.
The PricewaterhouseCoopers audit and consulting services company has confirmed that the project is viable to secure funding of PKR 10 billion. The proposal for this has been sent to the Planning, Development and Reform, Defence and Finance Divisions for their reviews. A summary has already been approved by the Law and Justice Division and an approval for signing of memorandum of agreement with the FWO has already been sought. The cabinet sought this summary and gave its approval.
This pipeline will allow for crude oil to be transported from Dubai to Gwadar and then to Urumqi, as China relies on Middle East for 50% of its oil needs.
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