PRL plans $1.2bln project

KARACHI: Pakistan Refinery Limited (PRL) on Tuesday announced to undertake refinery expansion & upgrade project (REUP) worth $1.2 billion to produce EURO V compliant high-speed diesel (HSD) and motor spirit (MS/petrol) as well as to expand crude processing capacity to 100,000 barrels per day (bpd).

The initiative also aims to achieve ‘self-sustainability’ by upgrading from a hydro-skimming refinery to deep conversion refinery, reducing production of high sulphur furnace oil.

PRL shared the latest development in its filing to Pakistan Stock Exchange (PSX) after its board of directors decided to undertake the REUP.

The refinery announced that the project cost was estimated at $1.2 billion on the basis of a detailed feasibility study. However, “actual costing will be determined after the completion of the FEED (front end engineering design) study, followed by financial close and award of engineering procurement & construction (EPC) contract,” it added.

PRL would take on the FEED study of the said project and appoint a financial advisor, with bidding expected to be in place by the quarter ending March 31, 2022.