Thursday December 08, 2022

Pakistan Refinery to stop HSFO production in 5 years

November 08, 2022

KARACHI: Pakistan Refinery Limited (PRL) would reduce the production of high sulphur furnace oil (HSFO) to zero in the next four to five years under its refinery up-grade and expansion project.

“We have made turnaround by brining change in crude recipe and become pioneer by being the first refinery to go for expansion and upgradation,” two top officials of PRL informed The News in an exclusive interview.

PRL Board Chairman Tariq Kirmani and CEO/Managing Director Zahid Meer gave the interview after the annual general meeting (AGM) a few days back. At the meeting, the senior officials considered the upgradation and expansion plan of the refinery as well as financial results of the company.

PRL contributed 12 percent or 1.2 million tonnes in the total production of petroleum products, which was 10.2 million tonnes in 2021-22. Officials said that production of valuable high speed diesel (HSD) and petrol started in 2012-13 to cut HSFO production.

“The production of HSFO has been brought down to 22 percent from 34 percent and HSD production went up to 50 percent from 38 percent in the last nine to ten years,” they said. Refinery expansion and upgrade project (REUP) was approved on December 27, 2021 and is expected to be completed in 2026-27

The benchmarks of REUP are production of EURO V compliant HSD and MS/Petrol, installation of Deep Conversion Refinery Technology to reduce production of HSFO and expansion of capacity from 50,000 barrels per day to 100,000bpd.

Upon the completion of the project, the production of liquefied petroleum gas (LPG) would be raised to four percent from the existing one percent whereas four percent propylene would be produced, which was now zero percent.

The production of motor gasoline (petrol) would go up to 32 percent from the current 18 percent, HSD production would see some contraction and would fall to 42 percent from 48 percent.

Whereas, the production of HSFO would come to zero from the existing 22 percent. Meer told that turnaround made in PRL in the last few years pushed up its revenue to Rs191 billion in the last financial year, which was Rs92 billion a year back.

Likewise the profit of the company also rose to Rs12.6 billion in the last financial year, which was the highest ever profit it earned in its history. Pakistan’s total demand of petroleum products was 22.8 million tonees in 2021-22, of which the country imported 55 percent or 12.5 million tonnes petroleum products, whereas local refineries produced 10.3 million tonnes or 45 percent to meet the local demand.