Asia/Pacific News
Pakistan Eyes Expanding Bunker Market Through China Deal
An anticipated increase in bunkering demand resulting from the establishment of the China-Pakistan Economic Corridor (CPEC) has the Pakistan National Shipping Corporation (PNSC) looking for participants for joint ventures and investments within the sector, local media reports.
Arif Elahi, PNSC Chairman, says that the company is interested in developing its bunkering business because of the sector's promising future, which will be supported by CPEC.
Elahi's comments came Thursday at a workshop "Marine-fuel bunkering in Pakistan," where PNSC Executive Director Tariq Majeed also spoke, highlighting incentives and tax-relief provided by the government intended to support the bunkering sector.
Majeed says that the company is looking to enter into partnerships with oil-refineries, financial institutions, and bunker traders, and is interested in investing in new machinery to strengthen the country's seaport infrastructure.
Some experts at the workshop suggested that foreign investment in Pakistan will grow alongside the bunker demand in the country, leading to improved efficiencies and the development of higher quality standards, including more testing labs.
The experts also suggested that the industry as a whole needs to work on improved cooperation in order to minimise risk and optimise growth in the face of low oil prices and volatility in the market.
In April, Vitol Group (Vitol) announced that its subsidiary Vitol Dubai Limited had completed the purchase of a 15 percent stake in Pakistani bunker player Hascol Petroleum Limited's (Hascol's) share capital for $28 million.
