$5 Billion Refinery Upgrade Programme Aims to Boost Pakistan's Energy Security
Four of Pakistan's major oil refineries have signed upgrade agreements worth an estimated $5 billion to boost the country's energy security. The agreements, signed under the Brownfield Petroleum Refining Policy 2026, aim to increase domestic petrol production by 72%, high-speed diesel (HSD) output by 39%, and reduce furnace oil production by 63%. Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Cnergyico Petroleum Pakistan Limited have signed the agreements with Inter State Gas Systems (ISGS).
The policy provides fiscal incentives, tariff protection, and other measures to facilitate investment in refinery modernisation. The participating refineries will arrange financing and complete engineering, procurement, construction, and commissioning within a five-year period. According to Usama Qureshi, Vice Chairman of Cnergyico, the projected production increases represent the combined output of existing domestic refineries following completion of their respective upgrade projects.
The Brownfield Petroleum Refining Policy 2026 aims to modernise Pakistan's ageing refining infrastructure, improve fuel quality, and reduce the country's reliance on imported petroleum products. The policy introduces additional requirements aimed at strengthening Pakistan's petroleum supply security, including maintaining crude oil stocks equivalent to at least 14 days of refining capacity.