In Karachi, Pakistan Refinery Limited (PRL) has announced its intention to sign a supplemental agreement with the Oil and Gas Regulatory Authority (OGRA) soon. This agreement marks a significant step towards transformative upgrades and expansions within the company, aimed at doubling its refining capacity from 50,000 barrels per day (bpd) to 100,000 bpd.
The agreement will also enable PRL to produce EURO V standard fuel, saving the company substantial amounts annually in penalties for non-compliance with environmental regulations. This move follows a previous deal with the regulator to access incentives outlined in the new refinery policy.
As the first refinery to sign the upgrade agreement with OGRA last November, PRL is now preparing to sign the supplemental agreement after the government amended the Brownfield Refinery policy, necessitating this additional agreement.
Other refineries in the sector have also finalized their draft upgrade agreements with OGRA, except for one, indicating a forthcoming wave of significant investment in the refining sector.
PRL’s proactive approach to regulatory compliance and its commitment to capitalizing on incentives in the new refinery policy are evident in this upcoming supplemental agreement signing. This development is part of PRL’s broader strategy focused on operational excellence and readiness to meet future challenges.
Additionally, PRL’s recent achievements in surpassing production targets for the second quarter of 2023-24 and reaching unprecedented sales milestones, particularly in diesel sales, underscore its strategic decisions and operational efficiency. Despite economic challenges and shifts in market demand, PRL’s financial performance remains robust, reflecting its dedication to maximizing production efficiency and revenue growth.
