A report in Platts, citing a Royal Dutch/Shell official, indicates Pakistan's white oil (condensates) pipeline project is in the testing stage and is set to go operational by year's end.

According to the insider, "The 817 km white oil pipeline [will] run from Port Qaism in the south to storage facilities in Mehmudkot, near the city of Multan in central Punjab province."

"The line would have the capacity to move 12 million metric tonne per year of diesel and kerosene. The pipeline is expected to save an estimated annual US$34 million in transportation costs as it is expected to replace around 10,000 trucks currently used for moving the fuel," added the source.

Shell has a 26% stake in the project. Its other partners are Pak Arab Refinery (51%), Pakistan State Oil (12%) and Caltex (11%).

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