KARACHI: Chinese companies have shown significant interest in the expansion and upgrade of Pakistan Refinery Ltd (PRL), signaling a promising development for the country’s energy sector.
PRL conveyed its enthusiasm in a notice to the Pakistan Stock Exchange on Wednesday. “In a significant step towards enhancing Pakistan’s refining capabilities, PRL senior management recently visited China to engage with engineering, procurement, and construction (EPC) contractors and financial institutions,” the notification stated.
The discussions in China were highly productive, establishing a foundation for the next phases of PRL’s refinery expansion and upgrade project (REUP). “There was keen interest from Chinese companies to collaborate with PRL on this mega opportunity,” the notice added.
The REUP aims to double the refinery’s crude processing capacity from 50,000 barrels per day (bpd) to 100,000 bpd, adopting a state-of-the-art Deep Conversion Refinery configuration. This upgrade will utilize advanced technology to meet stringent environmental standards, including the production of Euro V standard fuels, significantly enhancing PRL’s operational efficiency and environmental impact.
“PRL is ahead of all refineries in Pakistan right now in terms of REUP,” stated Managing Director and CEO Zahid Mir. He noted that meetings with EPC contractors in China were very positive, resulting in a comprehensive plan to award the EPC contract by the end of the year and achieve the project’s financial close by mid-next year.
In addition to these strategic meetings, PRL has engaged with the Oil and Gas Regulatory Authority (Ogra) to sign a supplementary agreement, requesting amendments to align with the updated brown-field policy. This step is crucial for securing regulatory support for the REUP’s successful implementation and long-term sustainability.
The project represents a substantial 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 significantly to the country’s economic growth.
Story by Shahid Iqbal
