Oil terminal and logistics

“Storage is king,” said Jean Francois Lambert, global head of commodity finance at HSBC Holdings Ltd.

Petro knows the importance of Bulk storage facilties, as oil storage is part of the midstream sector of the oil industry. The midstream sector involves the transportation, storage, and wholesale marketing of petroleum products following extraction. Oil storage is a means of collecting products before being distributed downstream to refineries and retailers. Downstream operations might also use storage tanks to collect oil for further processing and marketing.

Benefits of having own termainal as follows:

  1. Governments use storage tanks to increase energy security
  2. Overall reserves of Petro products are increased
  3. Advantages to End dealers of Petro oil, as oil will be readily available

In sight of advantages Petro has already started to construct Oil terminal in some main attractive locations nearest to pipe lines and sea ports.

Various  location includes :

Machikye (Punjab) 40,000 MT
Habibabad(Punjab) 4000 MT
Sahiwal( Punjab) 4000 MT
Tarojaba(KPk) 4000 MT
Shikarpur(Sindh) 40,000 MT
Port Qasim (Balochistan) 50,000 MT

Further Oil terminals which are in pipeline are as follows:

Kemari, Quetta ,shiala,vehari,mehmood kot ,kotla jam,gatti,faqirabad,chakpirana,jugglot,dipalpur,chitral,kundian,surainurang,

Further storage facilities that were required are taken under hospitality arrangements from other oil marketing companies

Transportation fleet

Supply Chain plays a key role in oil and gas industry and epically in our sector Downstream , where timely arrangements of petro products and deliveries are considered to be most crucial aspect for business to be profitable.

Transportation is to deliver oil products from refineries to end user (retail outlet)

It normally transported by one of two options:

Pipeline – the most commonly used form of oil transportation is through oil In Pakistan Oil pipe line for refined products is a mega project that consists of two major sections owned by both PAPCO and PARCO. Its total Length is 1,232 km with a capacity of 9.7 million tons per day.It starts from Karachi going through terminals like Shikarpur, Mehmoodkot and Faislabad and it reaches its ending point at Machike. Currently the pipe line is used to transport HSD only but by the end of 2017 it is anticipated to transport MS as well. Following are the major sections of the pipe line operating in Pakistan.

  • MAHMOODKOT- FAISALABAD–MACHHIKE (MFM) PIPELINE
  • WHITE OIL PIPELINE

Truck – while the most limited oil transportation method in terms of storage capacity, trucks have the greatest flexibility in potential destinations. Trucks are often the last step in the transport process, delivering oil and refined petroleum products to their intended storage destinations.

As Petro has diverse experience in transporting and marketing products and due to flexibility in various destination, company has focused and invested in its own branded fleet equipped with online tracker system which consist are about 100 Tank lorry, consistently moving around the nation for mainly purpose of delivering products to major industry and agriculture consumers .

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