Karachi, December 12, 2023 – Attock Refinery Limited (ARL) on Tuesday made an announcement to temporary shutdown of crude distillation units.
Attock Refinery Limited (ARL) has declared a temporary shutdown of its crude distillation units, citing a depressed dispatch pattern for the current month of December 2023. In a communication with the Pakistan Stock Exchange (PSX), the company outlined the reasons behind this strategic decision and the potential implications for its operations.
According to the communication, the dispatch pattern for December 2023 has remained subdued, leading to an accumulation of stocks for premier motor gasoline (PMD) and high-speed diesel (HSD). The levels of these products have reached unusually high levels, with minimal or no ullage in storage tanks, especially for PMG.
To address the challenge of excessive stockpiles and manage refinery operations efficiently, Attock Refinery has opted for a temporary shutdown of its crude distillation units. As a result, the company is currently operating at approximately 60 percent throughput. This decision aims to optimize resources and align production with the prevailing market conditions.
The company highlighted the potential consequences of maintaining high stocks, stating, “This, if continued, would result in curtailment of crude intake from oilfields with an adverse effect on associated gas as well.” This indicates the broader impact of the shutdown on both crude oil supply chains and associated gas production, underscoring the intricate nature of the refinery’s operations.
Attock Refinery has proactively informed the Oil and Gas Regulatory Authority (OGRA) about the surplus inventories of products that are readily available to meet market demand. This communication serves as a reassurance to regulatory authorities and the market, indicating that despite the temporary shutdown, the company has sufficient inventories to ensure a stable supply to consumers.
The decision to temporarily halt crude distillation units reflects the dynamic nature of the oil and gas industry, where market fluctuations and inventory management play a crucial role in the decision-making process of refineries. Attock Refinery’s strategic move is seen as a proactive measure to align production with demand and prevent potential disruptions in the supply chain.
Market analysts are closely monitoring the situation, anticipating updates from Attock Refinery as the company navigates through the temporary shutdown phase. The impact on associated gas production and crude oil intake from oilfields will likely be assessed in the coming weeks.
As the company grapples with the challenges posed by the current market conditions, stakeholders are optimistic that this temporary shutdown will enable Attock Refinery to streamline its operations and maintain a balance between production and inventory levels, ensuring a sustainable and efficient operation in the long run.
