ARL plans to enhance crude oil refining capacity

July 22, 2011

ABDUL RASHEED AZAD

0 Comments

The Attock Oil Refinery (ARL) has planned to expand its existing crude oil refining capacity through pre-flash unit and Isomerization Unit, which would cost $100 millions.

According to documents available with Business Recorder, the oldest oil refinery in the region is in the bidding process for expansion, up-gradation and diversification of its existing system due to ever-increasing demand of refining POL products in the country.

The planned Pre-Flash Unit would utilise additional 20,000-25,000 Barrels Per Day (BPD) of crude from TAL Block near (Kohat) projected within three-four years. The company is going to install the pre-flash with distillation unit on least cost option, which would increase its capacity by 10,400 BPD. The existing capacity of ARL is 42,000 BPD, which would reach 53,000 BPD after the installation of pre-flash unit.

Preparation of Front End Engineering Design package (FEED) has been completed by original designer of the unit on which the Pre-flash would be added in the system. The total expected cost of the project is $27 million.

The other plan Isomerization Unit of ARL would be completed at an estimated cost of $73 million within two years after the completion of bidding process. FEED for the project has been completed by M/s UOP, USA, who is also the licensor of the technology.

ARL's primary activity is refining crude oil, besides producing certain petroleum products such as liquefied petroleum gas (LPG), unleaded petroleum solvent grade (PMG), naphtha, premium motor gasoline, mineral turpentine (MTT), JP-1 & JP-8, kerosene oil, high speed diesel (HSD), light diesel oil (LDO), furnace fuel oil (FFO), low sulphur fuel oil (LSFO), and polymer modified bitumen (PMB).

ARL is seriously considering installation of an Isomerization Complex to upgrade its Light Strain Run Naptha, to produce Permanent Magnet Generator (PMG) with low benzene and aromatics. A Diesel Hydro desulfurization unit to reduce sulphur content in HSD has also been planned.

Currently crude production of Pakistan is 65,000 to 67,000 barrels per day and total capacity of the refineries is 287,000 barrels per day or 12 million tons hence 22,0000 barrels per day are being imported.