Key points
- Agreements could unlock more than $6 billion in investment
- Upgrades will enable domestic production of Euro 5 fuel
ISLAMABAD: Pakistan’s five major oil refineries are ready to sign agreements under the government’s Brownfield Refinery Upgradation Policy, paving the way for more than $6 billion in investment to modernise the country’s refining sector.
Federal Minister for Petroleum Ali Pervaiz Malik held separate meetings with the managements of Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL). The meetings reviewed progress on the policy, refinery operations and measures to strengthen energy security.
The managements of all five refineries reaffirmed their readiness to sign the agreements, which are expected to be concluded early next month.
The agreements are likely to unlock approximately $6 billion in investment in Pakistan’s refining sector.
Malik said refinery modernisation was essential for the long-term sustainability of the domestic refining industry.
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He said the planned upgrades would enable refineries to produce Euro 5-compliant fuel products locally, reducing reliance on imported petrol and diesel.
Domestic production of higher-quality fuels could also help reduce costs associated with imports and strengthen the security of petroleum supplies, the minister said.
He stressed that timely signing of the agreements was imperative for taking the upgradation programme forward. He assured the refineries of continued government support in resolving implementation-related issues.
During a meeting with PARCO management, the minister reviewed the company’s financial and operational performance and its plans to strengthen Pakistan’s energy security.
Refineries maintain operation during Strait of Hormuz crisis
He appreciated PARCO for maintaining its operations during the Strait of Hormuz crisis. “Pakistan had managed to keep its petroleum supply system functioning despite disruption risks,” the minister said. Continuity of petroleum supplies and resilient supply chains were essential to national energy security, he added.
PARCO also briefed the minister on developments concerning the proposed Oil City in Hub, planned as a strategic energy terminal and storage complex.
The project is intended to strengthen energy security, improve trade connectivity and supply assurance, and support economic growth.
At PRL, the managing director, board of directors and management briefed Malik on the company’s financial and operational performance. They also outlined measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.
In separate meetings with Cnergyico, NRL and ARL, the minister sought the managing directors’ views on impediments to implementation of the refinery upgradation policy.
The managing directors said their respective companies had completed the required preparations and were ready to sign the agreements.
The ARL managing director highlighted the need to upgrade existing refineries to meet evolving international fuel standards and changing market requirements.
He also appreciated the petroleum ministry’s role in advancing reforms in the sector.
Malik reiterated that modernising Pakistan’s refining capacity was important for improving fuel quality and refinery efficiency, reducing dependence on imported petroleum products and strengthening domestic supply resilience.
The government remains committed to working with the refining industry to ensure timely implementation of the policy and facilitate the investments needed to modernise Pakistan’s refining infrastructure.
