October 18, 2023 (MLN): Pakistan Refinery Limited (PRL), a stalwart in the refining sector, is embarking on a transformative journey with the Refinery Expansion and Upgrade Project (REUP) to propel PRL to double its refining capacity from the current 50kbpd to 100kbpd.
The primary objectives of the REUP are to meet local demand, convert the refinery from basic hydroskimming to deep conversion, and produce environmentally compliant EURO V HSD (Diesel) and MS (Petrol), thereby eliminating the production of loss-making furnace oil.
This strategic shift aligns with PRL's commitment to producing cleaner and environmentally friendly fuels to meet the growing market demands.
Currently, PRL produces 250k Metric Tons (MT) of MS (petrol) per year. However, with the expansion and upgrade project, the production is anticipated to increase significantly to 1.5 Million MT/year.
Likewise, the production of High-Speed Diesel (HSD) is expected to rise from around 600,000 MT/year to approximately 2 Million MT/year post-upgrade.
In this significant stride towards achieving these objectives, PRL and United Energy Group (UEG) have formalized their collaboration through a memorandum of understanding (MoU) signed on October 18, 2023, in China.
This historical moment was graced by the Honourable Prime Minister of Pakistan and the Minister of State for Energy, Power, and Petroleum.
Under the MoU, the Parties have expressed their respective desire and willingness to establish a strategic cooperation relationship on the basis of mutual interest in the energy industry in Pakistan.
The Parties will enter into good faith negotiations to identify potential cooperation and collaboration opportunities including equity investment in PRL as a strategic investor (with adequate board representation) for the upgradation and growth of the refinery.
This strategic collaboration between two prominent entities in Pakistan's energy industry is anticipated to have a profoundly positive impact on the sector's growth and development, ultimately contributing to a sustainable and environmentally responsible energy landscape in Pakistan.
Copyright Mettis Link News
Posted on: 2023-10-18T20:06:52+05:00
