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Chinese companies keen in expansion project, says PRL

  • In notice to PSX, refinery says senior management from PRL visited China and had 'productive' discussions
Published May 22, 2024

Chinese firms have expressed a keen interest in collaborating with Pakistan Refinery Limited (PRL) on its Refinery Expansion & Upgrade Project (REUP).

The refinery, a subsidiary of Pakistan State Oil Company Limited (PSO), shared the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“In a significant step towards enhancing Pakistan’s refining capabilities, senior management from PRL recently visited China to engage with Engineering, Procurement, and Construction (EPC) contractors and financial institutions.

“These discussions were highly productive, laying the groundwork for the forthcoming phases of PRL’s REUP,” read the notice.

The company shared keen interest from Chinese companies to collaborate with PRL on this mega opportunity.

The REUP project, which represents a substantial investment in Pakistan’s energy infrastructure, is a major initiative for PRL, and aimed at doubling the refinery’s crude processing capacity from 50,000 barrels per day (bpd) to 100,000 bpd.

PRL said the expansion will be complemented by the adoption of a state-of-the-art deep conversion refinery configuration.

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“The upgraded refinery will utilize advanced technology to meet stringent environmental standards, including the production of EURO V standard fuels, thereby significantly enhancing PRL’s operational efficiency and environmental footprint,” read the statement.

“The meetings with EPC contractors in China yielded very positive results,” Zahid Mir, Managing Director and CEO of PRL, was quoted as saying in the PSX notice.

Mir said that the company’s management has developed a comprehensive plan to award the EPC contract by the end of this year and aims to achieve the financial close of the project by mid-next year.

In addition to these meetings, PRL also engaged with the Oil and Gas Regulatory Authority (OGRA) to sign a supplementary agreement, said Mir.

He informed that PRL has requested amendments to the existing agreements to align with the updated brownfield policy, which is crucial for securing the regulatory support needed for the project’s successful implementation and long-term sustainability.

“PRL aims to strengthen its position in the global energy market and contribute significantly to the country’s economic growth,” he said.

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Mubashir Munir May 22, 2024 02:20pm
Please privatise all public enterprises immediately
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