Pakistan’s Oil Refining Sector to Witness Huge Investment

SEATTLE (Oil Monster): Pakistan’s leading oil refiner, Cnergyico Pk Limited, announced plans to make investment of over $1 billion in its refining complex, aimed at boosting its production capabilities. Also, Pakistan Refinery Limited (PRL) declared that it aims to invest up to $1.7 billion to double its processing capacity to around 100,000 barrels per day, with targeted completion by end-2028.

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The country’s refineries are reportedly gearing up for huge upgrades, following the government’s new policy. The five refineries in the country are projecting a collective investment of $5-$6 billion in various projects to boost capacities. These are expected to double the country’s petrol output and boost the diesel output by nearly 47%, in addition to reducing furnace oil production by up to 78%.

The above upgrades could help the country become self-sufficient to meet diesel requirements, thus avoiding costly imports. This in turn could help preserve foreign reserves amidst falling currency and political unrest.

The country’s government had recently introduced the Brownfield Oil Refinery Policy, which encourages additional investments in existing projects.

It must be noted that foreign investors have been cautious in investing in new projects in the country due to several reasons.

Cnergyico Pk Limited accounts for nearly 37% of Pakistan’s total refining capacity.