Pakistan's Oil Refinery Sector Set for $5 Billion Upgrade

Pakistan's oil refinery sector is set for a major transformation as five domestic refineries plan to invest up to $5 billion in green fuel, capacity expansion, and cleaner petroleum products.

The government has finalized agreements with the refineries, with Pak-Arab Refinery Company (Parco) agreeing to proceed with a $600 million green fuel project. Parco will shift from Euro-III to Euro-V standards and reduce furnace oil production.

Pakistan Refinery Limited plans to invest between $1.8 billion and $2 billion, eliminating furnace oil production and doubling its crude processing capacity from 50,000 barrels per day.

Cnergyico Pakistan Limited will invest $1.2 billion in three development phases, including cleaner fuels, a bottom-of-the-barrel project, and refinery expansion. The company also plans to build a new Single Point Mooring facility.