Pakistan’s three major refineries ink upgrade agreements with govt

Three major refineries of Pakistan, including Cnergyico Pk, Attock Refinery and National Refinery, have signed agreements with Inter State Gas Systems (ISGS), a state-owned gas company, to proceed with projects to upgrade their existing plants under the country’s amended 2023 refinery policy, the companies said on Thursday.

The listed refineries disclosed the development in their respective notices to the Pakistan Stock Exchange (PSX).

The agreements were signed in Islamabad with ISGS, which has been designated by the Ministry of Energy’s Petroleum Division as the implementation entity under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries (Amended February 2024 and August 2026).

“Pursuant to the policy, ISGS has been nominated as the implementation entity on behalf of the Petroleum Division for execution of the upgradation agreement, which provides for the upgradation of the company’s existing refinery, including implementation of the approved refinery upgradation project, in accordance with the terms and conditions stipulated under the policy,” said Cnergyico Pk in its filing to the bourse.

“The company remains committed to upgrading and modernising its refinery in line with the objectives of the policy and expresses its appreciation to the Government of Pakistan for its support and initiatives towards facilitating the modernisation and upgradation of the country’s refining sector,” the refinery added.

Meanwhile, Attock Refinery Limited said that the execution of the upgrade agreement marks a “significant milestone in the company’s efforts to modernise and upgrade its existing refinery infrastructure, enhance operational efficiency, improve product quality, produce Euro-V standard fuels and contribute towards a more sustainable and secure energy future for Pakistan.”

Similarly, National Refinery Limited stated that the signing of this agreement marks a breakthrough in the company’s efforts to modernise the existing refinery infrastructure, contribute to a more sustainable and secure energy future and strengthen supply-chain resilience for the country.

The Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, was introduced to modernise and enhance the refining capabilities of existing refineries in Pakistan. The policy aims to ensure compliance with international fuel standards, produce cleaner and environmentally friendly fuels, and meet the growing demands of the market.

In August 2026, management of all five refineries, i.e. PARCO, PRL, NRL, Cnergyico, and ARL, reaffirmed their commitment to sign agreements early next month, expecting to unlock approximately $6 billion in investment.

However, in September 2026, the Federal Cabinet stipulated further amendments and set a deadline of October 1, 2026, for refineries to sign Upgrade Agreements with the Ministry of Energy (Petroleum Division) instead of OGRA.

Financial penalties, including a reduction in deemed duty on HSD, were introduced for those failing to meet the deadline.