Pakistan’s five major oil refineries are ready to sign upgradation agreements early next month under the Brownfield Refinery Upgradation Policy, with the agreements expected to unlock approximately $6 billion in investment in the country’s refining sector.
Federal Minister for Petroleum Ali Pervaiz Malik held separate meetings with the managements of Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) to review progress on refinery modernisation, financial and operational performance, and measures to strengthen Pakistan’s energy security and supply resilience.
The managements of all five refineries reaffirmed their readiness to sign the agreements under the Refinery Upgradation Policy. The agreements are expected to be signed early next month and are likely to pave the way for approximately $6 billion in investment in Pakistan’s refining sector.
The Petroleum Minister said refinery upgradation was essential for the long-term sustainability of Pakistan’s refining industry. He said the planned upgrades would enable domestic refineries to produce Euro-V compliant fuel products, helping reduce the country’s reliance on imported petrol and diesel.
He added that producing upgraded petroleum products domestically could also help bring down their price compared with imported products, while strengthening the country’s ability to maintain fuel supplies during international disruptions.
Ali Pervaiz Malik stressed that timely signing of the agreements was imperative to take forward the refinery upgradation programme. He said the government would continue to facilitate refineries in resolving issues related to implementation of the policy.
During a separate meeting with PARCO management, the minister was briefed on the company’s financial and operational performance and its broader plans to strengthen Pakistan’s energy security.
The minister appreciated PARCO for effectively managing its operations during the Strait of Hormuz crisis. He said Pakistan successfully managed the crisis and ensured that the country’s petroleum supply system did not run dry.
He emphasised that continuity of petroleum supplies and the development of resilient supply chains remained essential components of Pakistan’s energy security.
The minister was also briefed on ongoing developments concerning the proposed Oil City in Hub, envisaged as a strategic energy terminal and storage complex. The project is aimed at strengthening energy security, enhancing trade connectivity, supporting supply assurance and contributing to economic growth.
At PRL, the Managing Director, Board of Directors and management briefed the federal minister on the company’s current financial and operational performance. The management also apprised him of measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.
In separate meetings with Cnergyico, NRL and ARL, the minister sought the views of the respective Managing Directors on any impediments to implementation of the new Refinery Upgradation Policy.
The Managing Directors informed the minister that their respective companies had completed the required preparations and were now ready to sign the agreements, which would constitute the first step towards implementation of the policy.
The Managing Director of ARL highlighted the need to upgrade existing refineries to ensure compliance with changing global dynamics and evolving fuel standards. He also appreciated the Petroleum Minister’s leadership and the role played by the Petroleum Division in advancing major reforms in the petroleum sector.
The federal minister reiterated that modernising Pakistan’s refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience and reducing reliance on imported petrol and diesel.
He said the government remained committed to working with the refining industry to ensure timely implementation of the new Refinery Upgradation Policy and facilitate the investments required for modernising the sector.
