PRL seeks used complex to upgrade operations

ISLAMABAD: Pakistan Refinery Limited (PRL) is looking to buy a second-hand refinery complex to upgrade its operations and increase output to help meet the rising demand for petroleum products as the country emerges from a pandemic-driven slump.

The South Asian country currently has five refineries with a total capacity of 417,000 barrels per day (bpd), according to Pakistan's 2020 economic survey, the largest of which stands at 150,000 bpd.

If the purchase goes ahead PRL could double its capacity to 100,000 bpd.

The company this week sought offers to purchase a second-hand refinery complex for relocation to Pakistan, according to an advertisement placed in international media.

It said it was undertaking an upgrade and potential expansion project to produce Euro V specification and high-speed diesel oil. For this purpose, it intends to purchase a pre-owned refinery complex with one or more conversion units, which should have a 50,000 to 100,000 bpd throughput design.

Offers from interested bidders have been invited with a closing date of April 23.

Pakistan's total refining capacity is 19.37 million tons per year, according to the Economic Survey, while the country consumes 19.68 million tons of petroleum products annually.

The government says refinery capacity is not being fully utilized on account of financial as well as technical problems, and is supplying only 11.59 million tons per year, with the rest of the country's needs imported.

The finance ministry, in a report last month, said that import volumes of petroleum crude increased by 13.8 percent in the first eight months of the 2020-21 financial year. Import volumes of petroleum products increased by 27.7 percent in the same period.