KARACHI, July 15: Pakistan State Oil (PSO) and Attock Refinery Limited (ARL) on Monday signed a memorandum of understanding (MoU) on the Machike Taru Jabba Pipeline Project.

The MoU was signed by PSO Managing Director Tariq Kirmani and Chief Executive Officer of ARL Raziuddin, on behalf of their companies.

The project involves the construction, ownership and operation of a 470-km long petroleum supply pipeline from Machike, Sheikhupura, Lahore to Tarru Jabba near Peshawar at an estimated cost of Rs10 billion, says a press release.

The pipeline will complete the missing section of the cross country pipeline network and create a strategic backbone between two major cities with feeder offshoots to all of the country’s main supply areas for petroleum products.

The project will further augment the safe and environment friendly means of petroleum transportation in the north of the country besides reducing road congestion and product losses through substantial reduction of inter-city movement of oil products through roads.