Pakistan Refinery Ltd (PRL) has received significant interest from Chinese companies regarding the expansion and modernization of its facilities, presenting a substantial opportunity for growth.
In a notice to the Pakistan Stock Exchange, PRL expressed its enthusiasm about the development. Senior management from PRL recently visited China to engage with engineering, procurement, and construction (EPC) contractors as well as financial institutions, marking a crucial step towards enhancing Pakistan’s refining capabilities.
The discussions held during the visit proved to be highly fruitful, laying the groundwork for the upcoming phases of PRL’s refinery expansion and upgrade project (REUP). Chinese companies have shown keen interest in collaborating with PRL on this major opportunity.
The REUP initiative aims to double the refinery’s crude processing capacity from 50,000 barrels per day (bpd) to 100,000 bpd, with plans to adopt a state-of-the-art Deep Conversion Refinery configuration to complement this expansion.
The upgraded refinery will employ advanced technology to meet stringent environmental standards, including the production of Euro V standard fuels, thereby significantly enhancing PRL’s operational efficiency and environmental footprint.
Managing Director and CEO Zahid Mir highlighted PRL’s leading position in Pakistan’s refining sector concerning the REUP project. He expressed satisfaction with the positive outcomes of meetings with EPC contractors in China, noting that plans are underway to award the EPC contract by the end of the year and achieve financial closure for the project by mid-next year.
Additionally, PRL has actively engaged with the Oil and Gas Regulatory Authority (Ogra) to sign a supplementary agreement, requesting amendments to existing agreements to align with updated brown-field policy. This step is deemed crucial for securing regulatory support for the successful implementation and long-term sustainability of the REUP project.
The project signifies a substantial investment in Pakistan’s energy infrastructure. By doubling capacity, producing value-added products, and adhering to international environmental standards, including the production of Euro V compliant MS and HSD, PRL aims to bolster its position in the global energy market and significantly contribute to the country’s economic growth.
