Pakistan's Refinery Modernization Program Gains Momentum with $4.5B Investment

Pakistan's long-awaited refinery modernization program is finally gaining momentum, with five major domestic refineries planning to invest between $4.5 billion and $5 billion in projects aimed at reducing furnace oil production, improving fuel quality, and expanding refining capacity.

The government is working to finalize implementation agreements with the five companies - Pak Arab Refinery Company, Pakistan Refinery Limited, Attock Refinery Limited, Cnergyico Pakistan Limited, and National Refinery Limited - which are expected to be signed at a high-level ceremony attended by Prime Minister Shehbaz Sharif.

Pak Arab Refinery Company (Parco) is leading the charge with a $600 million green fuel project, which will see its share of furnace oil production reduced from 14 percent to between 10 and 11 percent in the first phase. The refinery also plans to transition from Euro III to Euro V fuel standards.

The other four refineries are planning similar investments: Pakistan Refinery Limited is spending $1.8 billion to $2 billion on a bottom-of-barrel project, while Attock Refinery Limited is upgrading its facilities with an approximately $600 million investment. Cnergyico Pakistan Limited and National Refinery Limited are also planning significant investments in green fuel production and capacity expansion.