NRL’s $349mln upgradation projects start operations

KARACHI: The National Refinery Limited (NRL) on Wednesday notified to the Pakistan Stock Exchange (PSX) that its $349 million diesel hydro desulphurization (DHDS) and Naphtha Isomerization (ISOM) projects had commenced operations.

”NRL DHDS and auxiliary units have successfully commenced operations. Completion of DHDS has enabled the refinery to comply with government directives to produce high speed diesel meeting low-sulphur Euro-II specifications,” Nauman Ahmed Usmani, company secretary of NRL, said in the bourse filing.

Moreover, ISOM unit is in start-up phase where its auxiliary units (Naphtha splitter and Naphtha Hydrotreater) have already been commissioner. “The refinery will start producing additional volumes of motor gasoline from mid of July 2017,” Usmani added.

The HSD desulphurization would yield the price of Euro-II product, while increase of 1.5 percent deemed duty on HSD is under discussion with Ministry of Petroleum & Natural Resources that would result in improved margins.

Prevailing higher price of motor gasoline compared with the export price of Naphtha would also result in improved profitability. On completion of Isomerization project the production of motor gasoline would increase by conversion of most of Naphtha currently exported at lower price.

The government had tasked local refineries to produce Euro-II standard products by December 2012. Later, the Economic Coordination Committee of the Cabinet extended the deadline to December 2015.

National Refinery has a production capacity of 2.71 million tons per year, including multiple grades of lube base oils. Attock Group holds 51 percent equity stake in the NRL through ARL, POL and APL.