After Years of Delay, Landmark Refinery Upgradation Agreements Signed to Modernize Pakistan’s Energy Sector
ISLAMABAD: The country’s energy sector has made a historic step forward following long years of deliberation with formal agreements for the upgradation of refineries being officially signed and agreed between state-owned companies and domestic refiners.The execution of these important upgrade agreements with Inter State Gas Systems (ISGS) has been officially communicated to the Pakistan Stock Exchange (PSX) by leading local refineries such as Attock Refinery Limited (ARL), National Refinery Limited (NRL) and Cnergyico Pk Limited.
The landmark deals serve as a blueprint for an estimated $6 billion in foreign and domestic investments in Pakistan’s old brownfield refinery facilities within a strict five-year implementation period.Cleaner Fuels: Replacing existing production lines with ones capable of producing higher quality fuels that meet Euro-V standards in the country.
Optimization of output: Significant reduction of furnace oil production coupled with increase of domestic production of high-demand petroleum products.
In terms of foreign exchange savings, Import Substitution: Energy experts estimate that expanding the refining capacity will have a major impact on reduced imports of refined products, saving an estimated $1.5 billion to the economy per year.
While large operators secure compliance commitments ahead of national deadlines, PARCO is also set to finalise its framework agreement after final approvals from its internal board. A formal commemorative ceremony is expected when the Prime Minister returns from his official overseas visits.