ISLAMABAD: Pakistan’s proposed $3.5 billion Falcon Oils Refinery and Storage Complex in Dhabeji, Thatta, has cleared a key institutional hurdle after the China-Pakistan Economic Corridor (CPEC) Secretariat endorsed the project and asked the Board of Investment (BoI) to present it before the Joint Working Group on Industrial Cooperation.
The development could become one of Pakistan’s largest privately sponsored industrial investments in recent years and marks a major push to attract private-sector investment into the country’s petroleum and energy infrastructure.
According to an Office Memorandum issued by the CPEC Secretariat at the Ministry of Planning, Development and Special Initiatives on August 24, 2026, Falcon Oils (Pvt) Limited has proposed a 100,000-barrel-per-day deep-conversion refinery at Dhabeji, along with a large petroleum storage complex and captive power generation facility.
The memorandum, numbered CPECS/IC(14)/601/2026, supports the project’s inclusion in the CPEC framework as a business-to-business (B2B) initiative under the second phase of CPEC. The move is consistent with the governments’ focus on expanding private-sector participation in economic and industrial cooperation.
Falcon Oils refinery to have 100,000-barrel daily capacity
The proposed Falcon Oils refinery is expected to have a processing capacity of 100,000 barrels of crude oil per day. The facility will use deep-conversion technology and is planned to produce Euro-V-compliant petroleum products.
The project also includes around 4 million tonnes of crude oil and petroleum-product storage capacity, which would significantly expand Pakistan’s strategic and commercial petroleum storage infrastructure.
A 50MW captive power plant is also planned to support the refinery and associated facilities.
The additional refining capacity could help Pakistan reduce its dependence on imported finished petroleum products by increasing the domestic processing of crude oil.
Chinese companies involved in Falcon Oils project
The Falcon Oils project has also secured Chinese technical and engineering partners.
According to the CPEC Secretariat memorandum, Xinjiang Petroleum Engineering Design Co Ltd prepared the feasibility study for the project.
Engineering, procurement and construction (EPC) arrangements have also been signed with CEEC-GEDI / CGGC, providing the project with Chinese engineering and construction expertise.
The involvement of Chinese companies further strengthens the project’s potential role within the industrial cooperation component of the second phase of CPEC.
Dhabeji location offers strategic advantages
The refinery will be developed at Dhabeji in Sindh’s Thatta district, an area strategically located near Karachi’s port facilities and major transportation and industrial infrastructure.
Its location could provide logistical advantages for importing crude oil and distributing refined petroleum products to domestic markets.
The proximity to Karachi and existing port infrastructure is particularly important for a refinery designed to process imported crude oil.
Project aims to strengthen Pakistan’s energy security
The proposed Falcon Oils refinery could have significant implications for Pakistan’s energy security if implemented.
The additional deep-conversion refining capacity would allow the country to process more crude domestically rather than relying heavily on imported finished petroleum products.
The project’s large storage component could also improve the availability and management of crude oil and petroleum products, while providing additional capacity to support domestic demand.
Falcon Oils has stated that the refinery and storage complex will be developed and financed entirely by private sponsors on a fully non-recourse basis.
The company says the project will require no sovereign guarantee and no financial or other recourse to the Government of Pakistan.
Falcon Oils refinery expected to create jobs
The project is also expected to generate substantial employment during its construction phase and create permanent jobs after the refinery becomes operational.
The development could provide a major industrial anchor for the Dhabeji area and contribute to economic activity in Thatta district.
Falcon Oils CEO Sirhaan Ahmed Khan confirmed the development and described the CPEC Secretariat’s endorsement as an important step towards moving the refinery through the formal industrial cooperation mechanism.
Project moves to next CPEC stage
Following the CPEC Secretariat’s endorsement, the Board of Investment has been asked to place the Falcon Oils proposal before the Joint Working Group on Industrial Cooperation.
The move represents an important procedural step for the proposed refinery and could determine how the project advances within Pakistan’s broader CPEC industrialisation strategy.
If implemented, the 100,000-barrel-per-day Falcon Oils refinery would add significant new refining and petroleum storage capacity to Pakistan’s energy infrastructure.
The project would also provide an example of how privately financed, non-recourse investments could contribute to the next phase of Pakistan-China economic cooperation and CPEC industrial development.
