Agreements under Brownfield Refinery Upgradation Policy could pave the way for Euro 5 fuel production and reduce import dependence
ISLAMABAD: The managements of Pakistan’s five oil refineries have reaffirmed their readiness to sign agreements under the Refinery Upgradation Policy, with the agreements expected to be concluded early next month and potentially unlock around $6 billion in investment in the country’s refining sector.
Federal Minister for Petroleum Ali Pervaiz Malik held separate meetings with the managements of Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) on Friday.
The meetings reviewed progress on the implementation of the Brownfield Refinery Upgradation Policy, the financial and operational performance of the refineries and measures to strengthen Pakistan’s energy security, according to a news release.
The managements of all five refineries confirmed that they had completed the necessary preparations and were ready to sign the agreements.
The signing is expected to mark the first major step towards implementing the upgradation programme and could unlock approximately $6 billion in investment in Pakistan’s refining industry.
Upgrades to support Euro 5 fuel production
The petroleum minister said upgrading the country’s refineries was essential for ensuring the long-term sustainability of the refining sector and strengthening domestic energy security.
He said the planned upgrades would enable local refineries to produce Euro 5-compliant fuel products, helping Pakistan reduce its dependence on imported petrol and diesel.
Domestic production of higher-quality fuels could also help reduce costs compared with imported petroleum products, he added.
Malik stressed that timely signing of the agreements was imperative to move the refinery upgradation programme forward.
He assured the refinery industry that the government would continue facilitating companies in resolving issues related to implementation of the policy.
PARCO reviews energy security plans
During a separate meeting with PARCO management, the minister was briefed on the company’s financial and operational performance and its broader plans to strengthen Pakistan’s energy security.
Malik appreciated PARCO for effectively managing its operations during the Strait of Hormuz crisis.
He said Pakistan successfully navigated the crisis and ensured that the country’s petroleum supply system continued to operate without disruption.
The minister stressed that maintaining uninterrupted petroleum supplies and developing resilient supply chains remained essential to Pakistan’s energy security.
PARCO management also briefed the minister on developments concerning the proposed Oil City in Hub, which is planned as a strategic energy terminal and storage complex.
The project aims to strengthen energy security, improve trade connectivity, ensure petroleum supply and contribute to economic growth.
PRL maintains operations during crisis
At PRL, the managing director, board of directors and management briefed the petroleum minister on the refinery’s financial and operational performance.
The management also informed the minister about measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.
During separate meetings with Cnergyico, NRL and ARL, Malik sought the views of the respective managing directors regarding any obstacles to implementing the New Refinery Upgradation Policy.
The managing directors said their companies had completed the required preparations and were ready to sign the agreements.
They said the agreements would constitute the first step towards formally implementing the policy and commencing the planned modernisation programme.
The managing director of ARL highlighted the importance of upgrading existing refineries to ensure compliance with changing global market dynamics and evolving fuel standards.
He also appreciated the petroleum minister’s leadership and the role played by the Petroleum Division in advancing major reforms in the petroleum sector.
Government seeks modernisation of refining sector
Malik reiterated that modernising Pakistan’s refining capacity was critical not only to improving the quality and efficiency of petroleum products but also to strengthening domestic supply resilience.
He said refinery upgrades would help reduce reliance on imported petrol and diesel and support Pakistan’s wider energy security objectives.
The minister reaffirmed the government’s commitment to working closely with the refining industry to ensure timely implementation of the New Refinery Upgradation Policy and facilitate the investment required to modernise the sector.