Creating history of sorts at a time, Indian Oil Corporation has become the first company to export petroleum products to Pakistan.
NEW DELHI: Creating history of sorts at a time, Indian Oil Corporation has become the first company to export petroleum products to Pakistan. The state-owned Indian company exported the first cargo of 4900 tonne of lube oil base stock (LOBS) to its Pakistan counterpart on July 6.
The Pakistan government had granted a one time approval for the import from India. Indian Oil Corporation’s chairman and managing director Sarthak Behuria said another consignment of cargo was underway. IndianOil executives added that the details of the second cargo were under discussion with Pakistan.
Worth Rs 20 crore, the first consignment was sent from IndianOil’s Haldia refinery. The export of LOBS marks a significant achievement for IndianOil since it had been trying to sell petroleum products to the South Asian neighbour. Pakistan imports substantial quantity of petroleum products to meet its domestic demand.
IndianOil wanted to export diesel, LAB (linear alkyl benzene) and PTA (purified terephthalic acid) from its Panipat refinery. The products are on Pakistan’s negative list of imports.
IndianOil had offered to export 325,000 tonne of diesel through Karachi port and Wagah border to Lahore and Jhelum, respectively during October 2005 to March 2006.
Pakistan imports 4.5-5 million tonne of diesel every year at its Karachi port from Kuwait. Diesel from India could be cheaper and imported directly on land through pipeline or rail-road from Panipat refinery. IndianOil that has recently started petrochemicals facility at Panipat also wants to export petrochemicals to Pakistan.
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