PRL says plans to double refining capacity within 5 years

KARACHI: Pakistan Refinery Limited (PRL) revealed a plan on Friday to double its capacity to 100,000 barrels per day within five years as it looks to set new industry benchmarks for financial success and sustainability.

The company hosted an event ‘PRL Connect 2024’, which was based on its transformative Refinery Expansion and Upgrade Project (REUP) that is aimed at doubling the crude processing capacity from 50,000 to 100,000 barrels per day.

The initiative would have a significant boost in capacity as well as it would enhance profitability, the company said. Completion period of the project is five years.

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According to details, the project is designed to zero Furnace Oil production, redirecting efforts towards maximising the production of highly profitable products like Petrol and Diesel of Euro V standards.

The company statement said by aligning with market demands and prioritising lucrative fuel products, PRL’s REUP initiative aimed to set new industry benchmarks for financial success and sustainability.

A major development highlighted during the event was the shift in majority shareholding to Pakistan State Oil (PSO), signalling PSO’s commitment to upgrade and expand PRL.

“This move also ensures vertical integration for PSO as it secures a reliable supply chain,” the statement added.

Speaking on the occasion, PRL’s Board of Directors (BoD) chairman Tariq Kirmani emphasised that REUP was not only beneficial for the company but also for the PSO and the entire country.

“The project generates employment opportunities, stimulates economic activity, and contributes significantly to the national GDP [Gross Domestic Product], reducing import dependency and saving valuable foreign exchange,” he added.

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Tariq Kirmani also highlighted the company’s operational performance in the current and last quarter.

PRL achieved “record-breaking profits, 100% plant availability, highest ever sales of diesel and petrol in September, 2023,” he said.

Zahid Mir, PRL’s managing director/CEO, said, “Our journey towards doubling capacity is not just about numbers; it is about laying the foundation for a self-sufficient and sustainable energy future for Pakistan. We invite banking partners to become integral parts of our journey.”

A subsidiary of state-owned PSO, PRL was incorporated in Pakistan as a public limited company in May 1960. The company is engaged in the production and sale of petroleum products.