KARACHI, May 22, 2024 – Chinese companies have expressed keen interest in partnering with Pakistan Refinery Limited (PRL) on its ambitious Refinery Expansion and Upgrade Project (REUP).
PRL, a subsidiary of Pakistan State Oil Company Limited (PSO), announced this significant development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
Senior management from PRL recently undertook a strategic visit to China, engaging with leading Engineering, Procurement, and Construction (EPC) contractors and financial institutions. This visit marks a pivotal step towards bolstering Pakistan’s refining capabilities. According to the PSX notice, these discussions were highly productive, laying a solid foundation for the subsequent phases of PRL’s REUP. The company underscored the strong interest from Chinese firms in collaborating on this transformative project.
The REUP project represents a substantial investment in Pakistan’s energy infrastructure, with an aim to double the refinery’s crude processing capacity from 50,000 barrels per day (bpd) to 100,000 bpd. Pakistan Refinery Limited plans to complement this expansion with a cutting-edge deep conversion refinery configuration. This upgraded facility 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.
Zahid Mir, Managing Director and CEO of Pakistan Refinery Limited, highlighted the positive outcomes of the meetings with EPC contractors in China. He noted that the company’s management has crafted a comprehensive plan to award the EPC contract by the end of this year, with the goal of achieving financial closure for the project by mid-next year.
In addition to these promising discussions, Pakistan Refinery Limited has engaged with the Oil and Gas Regulatory Authority (OGRA) to sign a supplementary agreement. Mir mentioned that PRL has requested amendments to existing agreements to align with the updated brownfield policy. This alignment is crucial for securing the regulatory support necessary for the project’s successful implementation and long-term sustainability.
Mir emphasized that PRL’s goal is to solidify its position in the global energy market while significantly contributing to Pakistan’s economic growth. “We are committed to enhancing our refining capabilities to meet future energy demands and environmental standards,” he said. “This project not only strengthens our operational capacity but also positions PRL as a key player in the international energy landscape.”
The REUP project is set to play a crucial role in meeting Pakistan’s growing energy needs and supporting the country’s economic development. With strong interest from Chinese companies and robust planning from PRL’s management, the future of Pakistan’s refining industry looks promising.
