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Gwadar Refinery Plans are Shifting Over to Karachi

6/15/2021

Saudi Arabia has reportedly altered its intentions to build a new refinery in Gwadar over to a new location near Karachi. Gwadar has been considered a key piece for the developing China-Pakistan Economic Corridor, and this decision to move away is likely a detriment to the plans for this hub.

Plans for this project began about three years ago to build this $10 billion refinery in Gwadar, but recent comments from Saudi Arabian Prime Minister Special Assistant Tabish Gauhar indicate that this project will still proceed but will instead be placed near the city of Karachi. A petrochemical facility is also a potential addition as well nearby.

One possible reason for this shift to Karachi are perceived shortcomings in Gwadar’s infrastructure that Saudi Aramco has reportedly found during a feasibility report for the area. According to Mr. Gauhar, this location is less desirable than Karachi, where the refinery can be built in the next five years.