ISLAMABAD: The government is working on an extensive strategy for achieving self-reliance in the oil refining sector by upgrading the country’s existing facilities and setting up new deep conversion facilities.
For this purpose, a committee has already been formed comprising representatives from all the stakeholders and refineries with the task of drafting an innovative oil refining policy.
Besides, an unprecedented incentive package is in place for establishing new deep conversion oil refineries, facilitating them in the import of machinery, vehicles, plants, equipment and other materials.
“Upgradation/expansion is targeted to be implemented by local/existing refineries within 3-4 years. After the upgradation, refineries will be able to produce Euro-V fuels as well as convert furnace oil into more valuable products by ensuring efficient refinery configuration, ” according to an official document available with REPORTER.
During the current fiscal year, the country has started importing Euro-V standard petrol and diesel to tackle environmental issues and provide high-grade petrol in the country.
Hydrocarbon Development Institute of Pakistan (HDIP) had also set up testing labs for the examination of Euro-V standard fuel specifications before Oil Marketing Companies started importing the upgraded version of petrol and diesel in the country.
As per the official data, the country’s oil refining capacity stood at 417, 400 BPD in the last fiscal year, while six more projects, investment initiatives and proposals are at different stages of implementation to increase the capacity by 1.1 million Barrels per Day (BPD).
Currently, Pak Arab Refinery Limited (PARCO) is operating with 100, 000 BPD oil refining capacity, Attock Refinery Limited (ARL) 53, 400 BPD, Byco Petroleum Pakistan Limited (Byco) 150, 000 BPD, National Refinery Limited (NRL) 64, 000 BPD and Pakistan Refinery Limited 50, 000 BPD.
Pakistan’s total consumption of petroleum products stood at 19.68 Million Tons (MTs) during the fiscal year 2019-20, out of which 11.59 MTs was achieved through local refineries and 8.09 MT through import.
The petrol consumption in the country was 7.6 MTs per annum, out of which 30 per cent was being catered from local refineries and the rest was being imported to meet the national demand.
Similarly, the consumption of Diesel was around 7.3 MTs/annum. The local production can meet 65 per cent of the total demand, while the rest is being imported.
Under the new initiatives, an oil refinery and petrochemical complex of 300, 000 BPD oil capacity would be set up at Gawadar, Balochistan; PARCO would install 250, 000 BPD Coastal Refinery at Hub, Balochistan; SINO Infrastructure Hong Kong Oriental Times Corporation Ltd (SIOT) would establish 250, 000 BPD Gwadar Refining & Industrial Park, Upcountry Deep Conversion Refinery and Crude Pipeline of 250, 000-300, 000 BPD oil would be set up in collaboration with Pakistan State Oil and Power China International Group,
Falcon Oil Private Limited would set up a 40, 000 BPD oil refining facility at Dera Ismail Khan, while Khyber Pakhtunkhwa Khyber Refinery Limited would be established in Kohat having the capacity to purify 20, 000 BPD oil.