Four Pakistani Refineries Sign $5 Billion Modernization Agreements — Dawn
Four Pakistani oil refineries have signed agreements with the government to modernize technology and increase production. Around $5 billion is expected to be invested in the projects over five years, Dawn reports.
The documents were concluded by Attock Refinery, National Refinery, Pakistan Refinery and Cnergyico Petroleum. They were also signed by Inter State Gas Company, a subsidiary of the government's petroleum division designated to implement the agreements and monitor their execution.
A fifth company has not yet joined
The agreements were signed under the Brownfield Petroleum Refining Policy 2026, approved on July 28 by the Cabinet Committee on Energy chaired by Prime Minister Shehbaz Sharif. The policy provides tax incentives, stability provisions to protect investments, and foreign currency accounts for equipment imports in exchange for fuel oil exports.
Pak Arab Refinery, a joint venture between Pakistan and Abu Dhabi, has not yet joined the program. According to the publication's informed sources, the company considers its technology modern and is not ready for a new stage of upgrades. If it also signs an agreement, the total expected investment volume could rise to $6 billion.
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Attock Refinery CEO Adil Khattak called the signing of the agreements the beginning of the practical implementation of a major coordinated investment program for Pakistan's refining industry. According to him, the modernization should ensure the production of cleaner Euro V-standard fuel, reduce fuel oil output, replace significant volumes of imported petroleum products and strengthen the country's energy security.
Changing the production structure
The policy provides for the modernization and expansion of existing refineries to improve the quality, volumes and structure of production. After the upgrades, total gasoline output is expected to increase by 72%, from 10,700 to 18,400 tonnes per day. Diesel fuel production is planned to rise by 39%, from 21,240 to 29,520 tonnes per day, while fuel oil output is expected to decrease by 63%, from 15,417 to 5,714 tonnes per day.
The Euro V standard allows sulfur content in gasoline and diesel fuel of up to 10 parts per million. Refineries must maximize the production of gasoline, diesel fuel and other higher-value products while reducing fuel oil output. After modernization, the plants must also continuously maintain crude oil stocks equivalent to at least 14 days of their production capacity. An additional five-day reserve at sea is provided for refineries that import oil.
