July 16, 2020 (MLN): Pakistan Refinery Limited has released the details of its new operational strategy, which involves the implementation of new crude oil recipes.
As a part of the strategy, the new crude oil recipes are expected to positively change the product slate and make Refinery compliant with regulatory requirements. According to the latest notification issued by the company in this regard, the following progress has been achieved so far:
The Refinery is presently producing the Fuel Oil (FO) of new emission-standards enforced by the International Maritime Organization 2020 (IMO-2020) carrying a much higher price than High Sulphur FO which was previously produced.
The Refinery has also started producing the EURO-ll compliant High-Speed Diesel (HSD) w.e.f July 14, 2020. This has enabled Company to save the price differential and High Sulphur penalty imposed on the non-compliant HSD.
The above efforts are to improve future refinery-margins and to help the Company in achieving regulatory compliance. However, based on the present unstable business situation and depending on the margins, the Company will review its strategy regularly and, if required, may change it accordingly.