Pakistan Refinery Limited (PRL) has initiated a $1.7 billion refinery expansion and upgrade project (REUP) that aims to double its crude processing capacity to 100,000 barrels per day and enhance the production of high-margin products and low-sulphur fuels, including Euro-II and Euro-V petrol and diesel.
The project includes integrating a deep-conversion refinery with the existing setup and advancement positions PRL as a forerunner in propylene chemical production in polypropylene plastics.
PRL Chairman Tariq Kirmani, at the “PRL Connect 2024” conference, highlighted the project’s potential to reduce import reliance and save foreign exchange.
According to its recent financial statement, PRL is on schedule with the REUP’s front-end engineering design (FEED), which is aiming for completion by September 2024. The company is also finalizing technology licenses and seeking strategic investors.
PRL MD/CEO Zahid Mir mentioned a target for financial closure by December 2024. The project is set for completion by 2028.
Mir explained that the government would provide 25% of the funding, with PRL generating $200 million annually from furnace oil exports.
Upgrade funds are also sourced from a 10% duty on petroleum products deposited in an Escrow account.
Mir revealed plans to cease producing outdated furnace oil, a loss-making venture, and focus on profitable products like Euro-V standard petrol and diesel.
Leveraging the Brownfield Refinery Policy, PRL aims to transform its operations and align with market demands for sustainable financial success.
In related news, Attock Refinery Limited (ARL) announced a partial shutdown for maintenance. On February 10, 2024, the Ministry of Energy and Ogra approved a month-long halt, and alternative arrangements are in place to manage local energy demands.
 embarks on a significant $1.7 billion expansion and upgrade project, aiming to double crude processing capacity and advance towards producing high-margin and low-sulphur fuel products.){kind=link}