KARACHI: Pakistan Refinery Limited (PRL) has recorded highest ever production and sales of petroleum products in the month of September on the back of its refinery expansion and upgrade project and remarkable diesel sales of over 82,000 tonnes.
“With its ongoing refinery expansion and upgrade project (REUP) at the forefront, PRL set new records in production and sales, propelling the company towards a thriving future,” stated the information shared by PRL with The News.
In September 2023, PRL achieved an unprecedented average feed rate of 5,340 tonnes, demonstrating operational excellence and efficiency. The production of middle distillate soared over 77,000 tonnes, with diesel accounting for 73,423 tonnes, an all-time high in the refinery’s history.
Remarkably, diesel sales reached an astounding figure of over 82,000 tonnes, marking the highest-ever diesel sales in a single month.
To maximize revenue and product availability, PRL took a strategic decision to convert Naphtha into Motor Spirit (MS), resulting in the production of over 26,000 tonnes of MS 92, another record-breaking achievement, claimed the refinery.
PRL management attributed it to REUP, a transformative initiative undertaken by PRL, representing a turning point in the refinery’s history. The project aims to enhance the refinery’s capabilities, increase production, and augment positive margin product output.
The project’s FEED (Front End Engineering Design) value stands at an impressive $40 million, emphasising PRL’s commitment to bolster its refinery through strategic investments.
PRL Managing Director and CEO Zahid Mir said that long-term refinery sustainability depends on the upgrade project. “The board of directors of PRL and the government of Pakistan are committed to the REUP through the Brownfield Refining Policy. This underscores our determination to position PRL at the forefront of the industry,” he noted.
The PRL also emphasised their strategic decisions such as recipe change, using crude to minimise negative margin product production, and timely opening of letters of credit (LCs) to ensure the recipe change is effective.
These initiatives underline their commitment to achieving optimal production and revenue despite market challenges.
REUP is a monumental undertaking with a total project cost of approximately $1.6 billion. With the possibility of 25 percent of the project cost accessible from the escrow account, PRL is committed to ensuring the upgrade project’s success.
Mir further emphasised, “To get the maximum benefit from the Brownfield Refining Policy, PRL must increase its production, ensuring long-term benefits and additional incentives in the escrow account. Our dedication and strategic decisions drive the demand for middle distillate and boost diesel sales, enabling us to achieve these remarkable milestones.”
REUP amplifies PRL’s determination to embrace innovation, enhance efficiency, and meet the evolving needs of the industry and the nation.
