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Oil Transportation
Oil Transportation
Spanning over 2000 kilometres from Karachi up to Machhike near Lahore, PARCO’s cross-country network of pipelines, including those of its subsidiary – Pak Arab Pipeline Company (PAPCO), play a vital role in oil and transportation across the nation. The pipelines’ presence has led to a significant reduction in environmental harm and road congestion by substituting thousands of tank lorries. This underground river of fluid energy has practically eliminated surface pollution, thefts, product contamination and significantly reduced noise and fatalities related to road transport.
The 870-km Karachi-Mahmoodkot (KMK) Pipeline, commissioned in 1981, transports crude from Karachi to Mahmoodkot near Multan for its Mid Country Refinery. Initially, the KMK had an annual pumping capacity of 2.9 million tons which has been upgraded to 6 million tons per year.
The 362-km Mahmoodkot-Faisalabad–Machhike (MFM) Pipeline was commissioned in 1997 to transport refined products like diesel and kerosene to Faisalabad and Machhike near Lahore. MFM has a designed pumping capacity of approximately 3.7 million tons per year.
The US$ 480 million White Oil Pipeline is the mega-infrastructure project owned by Pak Arab Pipeline Company Limited (PAPCO). After the conversion of PARCO’s existing pipeline network for Crude Oil transportation, the White Oil Pipeline (WOP) caters to the transportation of diesel to the central regions of Pakistan, accounting for almost 60% of the total Petroleum consumption in the country.
To implement the 786 km White Oil Pipeline Project (WOPP) from Karachi to Mahmoodkot, a joint venture company, Pak-Arab Pipeline Company Ltd. (PAPCO) was created. PARCO holds a 62% majority share in PAPCO, while Shell and PSO hold 26% and 12% shares in equity, respectively. The 26” dia White Oil Pipeline is designed for a capacity of 12 million tons per year, starting with 5 million tons in the initial years.
The 22-km Korangi-Port Qasim Link (KPLP) Pipeline was laid by PAPCO, linking PARCO’s Korangi station with PAPCO’s Port Qasim station. Commissioned in 2006, this tactical link connects both the Karachi ports (Keamari & Port Qasim) with PARCO & PAPCO pipeline systems, offering flexibility in pipeline operations to receive crude as well as product from either port.
PARCO’s Pipeline System includes a network of highly sophisticated Telecommunication facilities and a comprehensive Supervisory Control And Data Acquisition (SCADA) System.
PARCO’s pipeline network, a critical and efficient life support system for the Central and Northern areas of the country, significantly contributes to the national exchequer through payment of dividends, taxes and import duties, while also delivering major savings in freight expenses.
PARCO takes pride in its extensive network of pipelines, which play a crucial role in facilitating the oil transportation of petroleum products across Pakistan. With state-of-the-art infrastructure, cutting-edge technology, and unwavering commitment to safety, the company ensures seamless movement of oil, enabling economic growth and energy security.
Since 1981, PARCO operates an extensive pipeline network spanning over 2,000 kilometers, connecting Karachi Ports, oil terminals, Mid-Country Refinery, and serves the major consumption centers across the country. Part of this network, called White Oil Pipeline (WOP) is owned by PARCO’s subsidiary Pak-Arab Pipeline Company Limited (PAPCO) – which is a joint venture between PARCO (62%), Shell Pakistan (26%) and Pakistan State Oil (12%).
These pipelines transport crude oil to MCR as well as Diesel and Motor Gasoline to demand centers in the central and northern regions of the country, and are the fastest, safest and most environment-friendly mode of oil transportation. Thus resulting in reduced transport costs for Pakistan, lower emissions and a smaller carbon footprint by replacing thousands of tank lorries.
PARCO owns and operates the following pipelines:
Oil Transportation Pipeline System
Karachi-Mahmoodkot Pipeline
- Commissioned in: 1997
- Length: 362 km
- Annual pumping capacity: 3.7 million tons
Mahmoodkot-Faisalabad–Machike (MFM) Pipeline
- Commissioned in: 1997
- Length: 362 km
- Annual pumping capacity: 3.7 million tons
Korangi-Port Qasim Link (KPLP) Pipeline
- Commissioned in: 2006
- Length: 22 km
- Annual pumping capacity: 5.97 million tons
Keamari-Korangi Link (KKLP) Pipeline
- Commissioned in: 1981
- Length: 18.4 Km
- Annual pumping capacity: 10.85 MMT
White Oil Pipeline (WOP)
- Commissioned in: 2005
- Length: 786 km
- Annual pumping capacity: 12 million tons
Korangi
Bubak
Shikarpur
Fazilpur
Mid-Country Refinery Mahmoodkot
Keamari
Port Qasim
Kot Bahadur Shah
Faisalabad
Machike
PARCO’s pipeline system also has the capability to receive local crude directly through decanting facilities and High Speed Diesel from local refineries, such as Pakistan Refinery Limited (PRL) and National Refinery Limited (NRL). Additionally, the system acts as a debottlenecking facility for Kaemari Port in Karachi by receiving imported crude oil and PAPCO’s High Speed Diesel from Keamari Terminal Station. The crude oil is then pumped to the Mid-Country Refinery, at Mahmoodkot via the KMK Pipeline, while the diesel is pumped through KPLP into the White Oil Pipeline system.
PARCO employs cutting-edge technology and sophisticated monitoring systems to ensure the integrity and safety of its pipelines. The advanced Supervisory Control and Data Acquisition (SCADA) system continuously monitors the pipelines, detecting any abnormalities or leaks, enabling immediate response and preventive measures. This ensures the protection of the environment as well as the safety of the company’s workforce and surrounding communities.
In 2021, both the White Oil Pipeline (operated by PAPCO) and the Mahmoodkot-Faisalabad-Machike Pipeline (operated by PARCO) underwent an upgrade. This upgrade allowed for the simultaneous transportation of Motor Gasoline in addition to High-Speed Diesel from Karachi to Machike (near Lahore). This project has built additional pumping and storage capacity to seamlessly run the country’s fuel supply chain and meet the ever-growing demand for fuel.
PARCO’s storage facilities are crucial in maintaining a continuous flow of the economy. They strategically store substantial amounts of crude oil and refined petroleum products to guarantee a steady fuel supply whenever needed. The PARCO Pipeline and Storage network, including PARCO, can uphold oil reserves over 1.5 million metric tons, encompassing stocks in storage tanks across multiple stations and the line-fill.
The company has deployed SMART security solutions to facilitate integrity of the pipeline and other strategic infrastructure.