Pakistan’s top investment body said on Tuesday it had approved a 435-kilometer pipeline project designed to transport refined petroleum products from the country’s central Punjab province to the northwestern Khyber Pakhtunkhwa region, a move aimed to improve energy security, lower transportation costs and reduce reliance on road-based fuel deliveries.
The Machike-Thallian-Tarru Jabba White Oil Pipeline was approved with the facilitation of the Special Investment Facilitation Council (SIFC), a government-backed body established to accelerate major investment and infrastructure projects by coordinating between federal and provincial institutions.
The pipeline will connect Machike, a major oil storage and distribution hub near Lahore in Punjab, with Thallian near Islamabad and Tarru Jabba near Peshawar, the capital of KP, creating a dedicated corridor for transporting refined petroleum products across a large section of the country.
Pakistan currently relies heavily on road transport to move fuel between storage depots and consumption centers, a system that is generally more expensive, less efficient and more vulnerable to supply disruptions than pipeline networks. “The White Oil Pipeline will establish a vital south-to-north corridor for white oil transportation across Pakistan,” the SIFC said in a statement.
“Upon completion, the project will improve fuel supply efficiency, reduce reliance on road-based transportation, lower logistics costs, minimize fuel losses, and enhance the overall reliability of the country’s energy supply chain.” In the oil industry, “white oil” refers to refined petroleum products such as petrol, diesel and jet fuel, as opposed to crude oil.
Pakistan has in recent years sought to modernize its energy infrastructure as fuel demand grows and transportation costs place pressure on the economy. The government has also promoted pipeline projects as a way to improve efficiency, reduce congestion on highways and lower the environmental impact associated with large-scale fuel transportation by road.
The SIFC said the white oil project had remained on its priority agenda and that a memorandum of understanding for the pipeline had been signed under the council’s platform. It said the council helped coordinate among stakeholders and facilitate the approvals required for the project to move forward.
The Council said the project was expected to contribute to job creation, support modernization of the country’s energy infrastructure and improve investor confidence by demonstrating Pakistan’s ability to facilitate large-scale strategic investments. “The successful facilitation of the White Oil Pipeline reflects SIFC’s continued role in strengthening Pakistan’s business ecosystem, unlocking investment opportunities, and accelerating key infrastructure projects that support sustainable economic growth and national development,” the statement added.