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Home News Business

New refining policy cuts furnace oil output 78%

News Editor by News Editor
18 August, 2023
in Business
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KARACHI: Pakistan’s recently authorised Brownfield Refining Policy will reduce all refiners’ furnace oil output by 78% to 3,400 tonnes per day from 15,500 tonnes per day.

All refineries’ FO production capacity will drastically reduced if improved local refineries generate more petrol and diesel from crude oil than fuel oil.

The policy document, encourages all existing refineries to upgrade, modernise, and expand (upgrade project) to produce Euro-V-compliant fuels and maximise motor gasoline and diesel production by minimising furnace oil (FO)/other fuels.

Upgraded refineries will receive incentives under this Policy. The refineries will choose equipment, technology, and processes project-by-project.”

The document states that Pak Arab Refinery Limited (PARCO) will produce 212 tonnes less fuel oil per day than its current 3,290 tonnes.

Capacity of The Attock Refinery Limited

Moreover, The Attock Refinery Limited (ARL) FO production capacity will drop from 1,024 to 908 tonnes per day. Pakistan Refinery Limited (PRL) would reduce its FO production capacity from 1,350 to 167 tonnes per day.

National Refinery Limited (NRL) would produce 1,127 tonnes of fuel oil per day instead of 2,253. While, Cnergyico Pakistan Limited (CPL) would reduce its FO production capacity from 7,500 to 1,000 tonnes per day.

After upgrading local refineries, petrol and diesel production would increase dramatically. PARCO’s diesel production will increase from 5,600 to 8,082 tonnes per day.

ARL’s diesel production will continue to stabilise. PRL will produce 6,111 tonnes per day from 1,350 tonnes. After upgrading, NRL’s diesel production will quadruple to 4,087 tonnes per day from 2,253 tonnes per day and CPL’s will increase to 11,000 tonnes per day from 8,500 tonnes per day.

PARCO’s petrol production will increase to 5,493 tonnes per day from 3,678 tonnes. ARL’s to 2,379 tonnes from 1,923 tonnes.

When PRL’s fuel production capacity rises to 4,854 tonnes per day from 783 tonnes per day, it will boom.

After increasing fuel output to 2,025 tonnes per day from 818 tonnes per day, NRL will also improve. From 3,500 tonnes per day to 6,500 tonnes per day, CPL will increase its petrol production.


Tags: DocumentOil RefineryPolicy DocumentRefining Policy
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