Unprecedented Expansion of Pakistan Refinery Limited
In a major development from the energy sector, Pakistan Refinery Limited (PRL) made an announcement about its bold REUP project. Aimed at doubling the current crude oil refining capacity from 50,000 to 100,000 barrels per day, the project is estimated at $1.7 billion. The initiative is also set to introduce the production of propylene, a significant petrochemical used in the plastic industry. This is a transformative move in the landscape of refineries throughout the country. The information comes from the trusted source of Reader Wall.
An Overhaul of Production and Standards
At the forefront of this pioneering project is PRL’s CEO, Zahid Mir, who explains the implications of the REUP project. One important impact is to terminate the production of the environmentally hazardous and low-value fuel known as high sulfur furnace oil (HSFO). To replace HSFO, the refinery will commence the production of Euro specification standard-compliant high-value products. Troubles in the past arose from the manufacture of HSFO, which led the refinery to face governmental penalties due to failure in meeting Euro specifications. Plans are in place to increase the production of high speed diesel (HSD) and motor spirit (MS) which will improve the company’s value proposition.
The Project’s Financial Strategy
To finance this ambitious project, PRL has reached out to the State Bank of Pakistan with a request to hold the export proceeds from fuel oil. For the REUP project to be successful and for the consistent operation of the refinery, this financial strategy is considered to be key.
A Move in Line with National Refinery Policy
Supporting this innovative project is the chairman of PRL’s board of directors, Tariq Kirmani. He affirms that the ambitious REUP project is in perfect harmony with the recently approved Brownfield Refinery Policy. Backed by the Federal Cabinet, this policy propels refineries towards upgrades for enhanced environmental compliance and efficiency. This policy is part of a broader agenda devised to revive Pakistan’s refining sector, which is expected to rally investments worth $4-5 billion. The primary goal of these endeavours is to minimize pollution and develop cleaner fuels, hence contributing to a greener, more sustainable future for the country, as reported by Reader Wall.
