Pakistan Refinery to Invest $1.2 Billion for Upgrading its Plants

Pakistan Refinery Limited (PRL) has planned to invest an estimated amount of $1.2 billion to enhance its capacity to produce petroleum products with improved quality as part of the Refinery Expansion and Upgrade Project.

Accordingly, the refinery will undertake an expansion of crude processing capacity to 100,000 barrels per day from the present capacity of 50,000 barrels per day.

The refinery will achieve self-sustainability through upgrading from Hydro-skimming Refinery to Deep Conversion Refinery, thereby significantly reducing the production of High Sulphur Furnace oil. Further, it will ensure the compliance to produce EURO V petroleum products, particularly High-Speed Diesel (HSD) and Motor Spirit (MS/ Petrol).

The refinery will undertake the Front-end Engineering Design study of REUP and appoint the financial advisor with the successful bidder expected to be in place by the quarter ending March-end next year.

The project cost is currently estimated at around $1.2 billion on the basis of the detailed feasibility study. The actual costing will be determined after the completion of the FEED study, followed by financial close and award of the Engineering Procurement and Construction (EPC) contract.

The PRL’s income statement is red these days as its first quarter ended with a loss of Rs. 378 million, mainly due to rupee depreciation against the dollar. The refinery is situated on the coastal belt of Karachi, Pakistan. It is operating at two locations – the main processing facility is located at Korangi Creek with supporting crude berthing and storage facility at Keamari.