Chinese group proposes investment push across Pakistan's energy sector

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik met Hou Jianxin, chairman of China's Shandong Xinxu Group, to discuss possible investment and broader cooperation in Pakistan's energy sector, according to an official statement issued on Thursday.

During the meeting, Jianxin expressed interest in building a long-term strategic partnership and said the company wanted to invest across Pakistan's energy value chain. The statement said he highlighted Shandong Xinxu's capabilities in upstream oil and gas, including field optimisation, drilling services and production enhancement, and signalled willingness to work on raising hydrocarbon output in Pakistan.

The discussion also covered downstream investment proposals. According to the statement, Jianxin showed interest in refinery upgrades, particularly the installation of a fluid catalytic cracking unit aimed at converting furnace oil into higher-value refined petroleum products. He also proposed setting up an energy equipment manufacturing plant in Pakistan to meet local demand and serve export markets in the Middle East.

The statement said Jianxin additionally pointed to the company's experience in offshore oil exploration and proposed joint work in Pakistan's offshore sector. He also shared proposals related to lead mining, the establishment of a sulphur processing plant, and the development of integrated energy cities along Pakistan's coastline.