ISLAMABAD: In a landmark development aligning with Pakistan’s refining policy, the Oil and Gas Regulatory Authority (OGRA) and Pakistan Refinery Limited (PRL) have officially inked a pivotal upgrade agreement, Thursday.
Following extensive deliberations, consultations and a series of meetings with key stakeholders, the agreement marks a significant milestone for the energy sector.
“After a marathon of meetings, consultations, and deliberations with the stakeholders, the agreement was finalized, and by the grace of Almighty Allah, we have signed the first one with PRL,” stated Masroor Khan, chairman of the Oil and Gas Authority.
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The Brownfield Refinery Policy, a critical component of the national strategic framework, necessitated these agreements to facilitate existing refineries in advancing their projects towards producing Euro-V-compliant fuels. The implementation of this policy is poised to usher in positive transformations within the oil sector of Pakistan.
“We believe that the upgrade projects under the Brownfield Refinery Policy are of paramount national importance. This agreement with PRL signifies the initiation of a series of strategic partnerships to enhance our refining capabilities and contribute to the production of environmentally friendly fuels,” added Masroor.
“It is pertinent to mention that with the implementation of this policy, the local production of Euro 5 compliant Mogas and Diesel will increase, which will reduce the burden of import and will save Foreign exchange,” said chairman OGRA.
The Pakistan Refining Policy’s successful implementation is anticipated to bring about a positive and lasting impact on the country’s energy landscape.
Earlier, in a statement, the regulator says that the Brownfield Refinery Policy required to be signed enabling the existing refineries to proceed with their projects to upgrade to produce Euro-V compliant fuels, which is a project of national strategic importance.
It is pertinent to mention here that the final agreed draft of the agreement was shared with the Refineries on November 8, 2023, keeping in view the policy guidelines of the federal government for execution, as the refineries have to sign the agreement with OGRA.
However, some of the refineries have raised certain objections which are found beyond the policy guidelines of the federal government; therefore, not considered and the same has been raised with the federal government.
The refineries have been advised to sign the agreed draft agreement within the due date.
Copyright Business Recorder, 2023
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