US Honeywell proposes refinery upgrade plan for Pakistan

Pakistan is considering a proposal from US conglomerate Honeywell Technologies to modernise and expand the country’s refinery sector to enhance domestic refining capacity and reduce reliance on imported petroleum products.

The development came during a high-level interaction between Finance Minister Muhammad Aurangzeb and a delegation of Honeywell Technologies led by its Vice President and General Manager, Barry Glickman, in Washington, DC, as read in a statement released on Tuesday.

During the meeting, the finance minister welcomed Honeywell’s proposed modernisation and expansion of Pakistan’s refinery sector, noting its potential to enhance the country’s domestic refining capacity and reduce reliance on imported petroleum products.

Ali Pervaiz Malik reaffirms commitment to refinery upgradation, energy security

Pakistan’s oil refining sector is a strategic but challenged industry, comprising five main refinery operators: PARCO, Attock Refinery Limited (ATRL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Cnergyico.

The sector primarily grapples with outdated hydro-skimming technology, which leads to the production of a high proportion of furnace oil (FO), a product for which domestic demand has significantly decreased.

Other challenges include tight refining margins, a credit crunch in the energy sector, and a significant capital investment requirement for upgrades to produce Euro-V compliant fuels.

Meanwhile, the meeting also included discussions on Honeywell’s technology and equipment solutions, as well as potential financing through the US EXIM Bank, the US International Development Finance Corporation (DFC), export credit agencies, and leading international banks.

Aurangzeb emphasised that the proposed initiative would support Pakistan’s energy security, industrial development, and sustainable economic growth.