KARACHI: Pakistan Refinery Limited (PRL) is advancing its $1.5 billion Refinery Expansion & Upgrade Project (REUP) by engaging Chinese engineering, procurement, and construction (EPC) contractors and financial institutions. The initiative aims to double the refinery’s production capacity and enhance its refining capabilities.
Senior management from PRL recently visited China to meet with EPC contractors and financial institutions, laying the groundwork for the project’s next phases. “These discussions were highly productive, laying the groundwork for the forthcoming phases of PRL’s Refinery Expansion & Upgrade Project (REUP),” PRL announced on Tuesday.
Earlier this year, PRL and the United Energy Group of China (UEG) signed a memorandum of understanding (MoU) for a $1.5 billion investment, but progress has been slow. The recent visit to China aimed to revive and advance this collaboration.
The REUP project will double PRL’s crude processing capacity from 50,000 barrels per day (bpd) to 100,000 bpd and incorporate a state-of-the-art Deep Conversion Refinery configuration. This upgrade will enable the production of EURO V standard fuels, significantly improving PRL’s operational efficiency and environmental footprint.
“PRL is ahead of all refineries in Pakistan right now in terms of our Refinery Expansion & Upgrade Project,” said Zahid Mir, Managing Director & CEO of PRL. “The meetings with EPC contractors in China yielded very positive results. We have developed a comprehensive plan to award the EPC contract by the end of this year and achieve financial close of the project by mid-next year. The feedback from these discussions has been overwhelmingly supportive.”
In addition to these strategic meetings, PRL is engaging with the Oil and Gas Regulatory Authority (OGRA) to sign a supplementary agreement. PRL has requested amendments to existing agreements to align with the updated brownfield policy, securing necessary regulatory support for the project’s successful implementation and long-term sustainability.
The Refinery Expansion & Upgrade Project represents a significant investment in Pakistan’s energy infrastructure. By doubling capacity, producing value-added products, and adhering to international environmental standards, including the production of EURO V compliant MS and HSD, PRL aims to strengthen its position in the global energy market and contribute substantially to Pakistan’s economic growth.
Story by Tanveer Malik
