Saudi Arabia, Pakistan Boost Energy Ties with Refinery, Grid Projects

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RIYADH (November 27, 2024) – Saudi Arabia is intensifying its strategic partnership with Pakistan by engaging in discussions on upgrading refineries and establishing a greenfield project for petroleum products, according to Musadik Malik, Pakistan's Minister of State for Petroleum. Speaking at the World Investment Conference in Riyadh, Malik highlighted the comprehensive scope of collaboration, which includes integrating the power grids of the two nations. This initiative aligns with both countries’ long-term energy strategies, particularly in renewable energy and hydrocarbons.  "We are closely working with the Kingdom to determine future energy needs and are jointly planning programs to meet these demands,” Malik stated. Energy Projects Under Negotiation

Two key projects are currently in the research phase:

1. Refinery Upgrades – Enhancing existing facilities to boost efficiency and output.

2. Greenfield Refinery – A state-of-the-art facility designed to produce both petroleum products and hydrocarbons.

While still under negotiation, these projects represent a shared vision for energy security and sustainable growth. Private Sector at the Forefront Malik emphasized the pivotal role of private-sector partnerships. Over $2.8 billion in Memorandums of Understanding (MOUs) were signed between the two countries in October, with several already converted into contracts. “Out of 28 to 30 MOUs, seven or eight have transitioned to active contracts in just three to four months,” Malik noted, pointing to a potential $1.8 billion investment stemming from a recent roadshow. Power Grid Connection Agreement To address energy demand fluctuations, Pakistan and Saudi Arabia signed an agreement to connect their power grids. This initiative aims to balance seasonal energy surpluses and deficits by integrating with the Gulf Cooperation Council (GCC) grid and exploring similar connections with Central Asia. “This connection ensures real-time surplus clearance and deficit management,” Malik explained, describing it as a stepping stone toward a unified regional energy market. A Trusted Ally. Malik lauded Saudi Arabia’s steadfast support, describing the Kingdom as a “true and steadfast ally” during challenging times. The collaboration underscores both nations’ commitment to not only addressing immediate energy needs but also planning for a sustainable, interconnected future.