Pakistan’s long-awaited refinery modernisation programme is moving forward, with five domestic refineries planning investments of $4.5–5 billion in green fuel projects, bottom-of-barrel units, capacity expansion and related infrastructure.
Under the amended Brownfield Refineries Upgradation Policy, agreements with local refineries are being finalised, with signing ceremonies expected soon.
Key Projects Underway
PARCO has agreed to proceed with a $600 million green fuel project, aimed at reducing furnace oil production and upgrading fuel quality to Euro-V standards.
Pakistan Refinery Limited (PRL) plans to invest $1.8–2 billion in a bottom-of-barrel project that will eliminate furnace oil production and double crude refining capacity from 50,000 to 100,000 barrels per day.
Attock Refinery Limited (ARL) is preparing an approximately $600 million upgrade focused on cleaner fuels, improved refining capabilities and increased motor gasoline production.
Cnergyico Pakistan Limited is planning a $1.2 billion investment covering green fuel, bottom-of-barrel technology, capacity expansion and a new Single Point Mooring facility, with capacity targeted to rise from 156,000 to around 200,000 barrels per day.
National Refinery Limited (NRL) is considering a $300–800 million hybrid project combining green fuel and bottom-of-barrel upgrades, alongside an increase in crude refining capacity from 50,000 to 70,000 barrels per day.
What It Means for Pakistan
The planned investments could significantly transform Pakistan’s refining sector by increasing domestic production of higher-value petroleum products, reducing furnace oil output, improving fuel quality and strengthening energy security.
For Pakistan’s broader industrial ecosystem, refinery modernisation also represents an opportunity to strengthen downstream industries, attract investment and build a more competitive energy and petrochemical value chain.
Source: Geo News
