Diesel for Pak: 3 refineries in the running

Karachi, Jhelum, Lahore to get 2.6 MT

The Indian Oil Corporation (IOC) has shortlisted three refineries for supplying diesel to Karachi. These include the Reliance refinery in Jamnagar, the Oil and Natural Gas Corporation's (ONGC) refinery in Mangalore and its own refinery at Koyali in Gujarat.

Senior company executives told Business Standard that the preparations had begun and that the company was waiting for Pakistan to take diesel out of the negative list of exports from India.

Pakistan State Oil Corporation had identified Karachi, Jhelum and Lahore for getting 2.6 million tonnes of diesel from IOC.

"Diesel for Jhelum and Lahore can be sourced from the refineries in the north. Initially, we were looking at only Panipat. But now we are also looking at the Mathura refinery," said a senior executive.

IOC is looking at all the modes for transporting the diesel. "We can start wagon movement of diesel for Lahore and Jhelum in Pakistan. A rail link with Lahore is already in place," said a senior IOC executive. The fuel can even be transported by road.

Lahore and Jhelum also have the option of a pipeline link from Jalandhar, but the company wants to move on this only after the contract period warrants it.

"If the supply agreement is reached only for a short period, then we may not look at the pipeline," he added. It would be feasible to transport diesel to Karachi by sea from Gujarat.

The Pakistani company identified a requirement of 1.2 million tonnes in Lahore, 1 million tonnes in Karachi and 0.4 million tonnes in Jhelum.

Pakistan currently imports most of its diesel from the West Asia. It imports 4.5 million tonnes diesel out of a total requirement of 7.2 million tonnes.