Refineries sign $6bn upgrade agreements

Refineries sign $6bn upgrade agreements

Pakistan’s major oil refineries have signed agreements with government-nominated Inter State Gas Systems (ISGS) to begin plant upgrades under the new refinery policy, paving the way for an estimated $6 billion investment over the next five years.

Attock Refinery, National Refinery, Pakistan Refinery and Cnergyico Pakistan signed the agreements on Thursday, while Pak-Arab Refinery Company (PARCO) is expected to sign its agreement soon. Petroleum Minister Ali Pervaiz Malik and other government officials played a key role in resolving issues that had delayed implementation of the policy.

Cnergyico Pakistan CEO Amir Abbassciy described the agreement as a major milestone for the country’s refining sector. He said the company remained committed to completing its upgrade programme and thanked the government and other stakeholders for their support.

Under the policy framework, Cnergyico has divided its upgrade project into three phases. The first phase will focus on producing Euro V-compliant fuels, the second will reduce furnace oil production, and the third will expand the refinery’s processing capacity.

Abbassciy said the project would help modernise Pakistan’s refining infrastructure, improve the quality of locally produced petroleum products, reduce reliance on imported fuels and strengthen long-term energy security.

Attock Refinery CEO Adil Khattak said the agreements marked a significant step for the refining industry and represented the start of a coordinated industrial investment programme worth around $6 billion.

He said the projects would support cleaner fuel production, reduce furnace oil output and replace a substantial volume of imported petroleum products.

Khattak noted that work on the refinery policy began with its first draft in December 2019. The policy received approval in August 2023 and underwent subsequent amendments before reaching the implementation stage.