Pakistan’s newly-approved Brownfield Refining Policy aims to reduce furnace oil production, a high-sulfur fuel, drastically. This policy will result in a decline in furnace oil output from 15,500 tonnes per day to a mere 3,400 tonnes per day, marking a 78% reduction. The overarching goal of this policy shift is to prompt refineries to pivot towards producing a higher quantity of petrol and diesel, subsequently diminishing the furnace oil production capacity.
Details on Refineries’ Production Capacities
As per the policy document made available to The News, the Pak Arab Refinery Limited (PARCO) is set to drop its fuel oil production capacity from 3,290 tonnes per day to 212 tonnes. Similarly, Attock Refinery Limited (ARL) will reduce its FO capacity from 1,024 tonnes per day to 908 tonnes. On the other hand, Pakistan Refinery Limited (PRL) will witness a notable drop in production, moving from 1,350 tonnes to 167 tonnes per day. The National Refinery Limited (NRL) will adjust its capacity from 2,253 tonnes to 1,127 tonnes per day. Cnergyico Pakistan Limited (CPL) will experience the most significant reduction, transitioning from 7,500 tonnes per day to just 1,000 tonnes.
Boost in Petrol and Diesel Production
The Brownfield Refining Policy is not merely about reductions; it also encourages existing refineries to upgrade their facilities to produce environmentally friendly fuels in line with Euro-V specifications. The upshot of this will be a substantial rise in petrol and diesel production post-upgradation. For instance, PARCO is projected to elevate its diesel production from 5,600 tonnes to 8,082 tonnes per day while boosting its petrol output from 3,678 tonnes to 5,493 tonnes per day.
Although ARL’s diesel production will remain relatively stable, its petrol production is set to increase from 1,923 tonnes to 2,379 tonnes per day. PRL’s transformation will be particularly impressive, with its diesel production surging from 1,350 tonnes to 6,111 tonnes per day and its petrol output catapulting from 783 tonnes to 4,854 tonnes per day.
Likewise, NRL is geared to double its diesel production figures to 4,087 tonnes and augment its petrol output from 818 to 2,025 tonnes per day. Lastly, CPL’s diesel production will rise from 8,500 tonnes to 11,000 tonnes per day, complemented by a petrol production increase from 3,500 to 6,500 tonnes per day.
