Refineries Still Finalizing Feasibility Studies After Signing $4.2 Billion Upgrade Deals

Four Pakistani refineries have signed agreements with the administration for major brownfield upgrades worth an estimated $4.2 billion, but have yet to submit their detailed projects to Inter State Gas Systems (ISGS), the entity designated to monitor the upgrade program.

Key points

• Cnergyico Pakistan is preparing a $1.2 billion upgrade program to growth crude-processing capacity from around 156, 000 barrels per day to 200, 000 barrels per day.
• Attock Refinery Limited, National Refinery Limited, Pakistan Refinery Limited and Cnergyico Pakistan Limited signed the agreements on September 24.
• National Refinery is evaluating a $300 million to $800 million hybrid Green Fuel and Bottom-of-the-Barrel project.
• Once completed, the upgrades are projected to reduce furnace-oil production from regarding 15, 417 tons per day to 5, 714 tons per day.
• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.

Attock Refinery Limited, National Refinery Limited, Pakistan Refinery Limited and Cnergyico Pakistan Limited signed the agreements on September 24. The projects involve fuel-quality improvements, Bottom-of-the-Barrel conversion, capacity expansion and other refinery upgrades.

Meanwhile, the refineries are still completing feasibility studies and Front End Engineering Design before submitting their detailed projects. While technical configurations, costs, financing arrangements and engineering packages are still being finalized, refinery executives remarked the agreements represent a commitment to the projects. NEPRA Considers Next Electricity Nightmare for Farmers.

In practice, the four projects have a combined estimated investment of regarding $4.2 billion. If Pak-Arab Refinery Company's planned $600 million Green Fuel project is included, the total investment throughout five planned refinery upgrades would reach concerning $4.8 billion.

Notably, the upgrade program is projected to rise Pakistan's overall crude oil refining capacity from regarding 450, 000 barrels per day to around 550, 000 barrels per day while improving fuel quality and reducing furnace-oil production.

Attock Refinery is planning a $600 million upgrade focused on fuel quality and its product mix. The project includes new naphtha treatment and reforming units and an upgrade of its Diesel Hydro-Desulphurisation unit. ARL expects the project to growth motor-spirit production by concerning 25 percent and bring diesel production to Euro-V standards.

Govt Seeks IMF Nod for Single Gas Tariff, Rs. 162 Billion Subsidy.

Pakistan Refinery is planning an estimated $1.8 billion project to almost eliminate furnace-oil production and double its crude-processing capacity from 50, 000 barrels per day to 100, 000 barrels per day. The refinery is seeking Chinese financing, but the proposed arrangement requires a sovereign guarantee or a corporate guarantee from Pakistan State Oil.

National Refinery is evaluating a $300 million to $800 million hybrid Green Fuel and Bottom-of-the-Barrel project. It has began a six-month feasibility study to determine the final configuration and is considering increasing crude-processing capacity from 50, 000 barrels per day to around 70, 000 barrels per day.

Cnergyico Pakistan is preparing a $1.2 billion upgrade program to growth crude-processing capacity from around 156, 000 barrels per day to 200, 000 barrels per day. The project includes Green Fuel, Bottom-of-the-Barrel conversion and a new Single Point Mooring facility, with work on its Euro-V/VI component already underway. Transparency International Asks PM to Intervene in Jura Energy Accord.

Pak-Arab Refinery Firm has not yet signed the upgrade agreement but has indicated that it aims to do so before October 24. It is preparing a $600 million Green Fuel project aimed at further reducing furnace-oil production and moving the refinery from Euro-III to Euro-V gasoline and diesel.

Once completed, the upgrades are projected to reduce furnace-oil production from regarding 15, 417 tons per day to 5, 714 tons per day. While high-speed diesel production could rise from 21, 237 tons per day to 29, 517 tons per day, motor gasoline production is projected to rise from around 10, 702 tons per day to 18, 402 tons per day. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

Add as a preferredSource on Google Follow on Google News Join WhatsApp.

Taken together, the developments around refineries Still Finalizing Feasibility Studies After Signing $4.2 Billion Upgrade Deals point to a situation that is still moving, and the coming days should bring more clarity.