Pakistan’s Refineries Set to Sign $6 Billion Modernization Agreements

Pakistan's five oil refineries are poised to sign modernization agreements that could bring in over $6 billion in investment, the government announced. Federal Petroleum Minister Ali Pervaiz Malik convened with the five refineries - Pak Arab Refinery Limited, Pakistan Refinery Limited, National Refinery Limited, Cnergyico and Attock Refinery Limited - to assess progress on the Brownfield Refinery Upgradation Policy.

All five refineries agreed to sign the deals, set to be finalized early next month. The upgrades aim to enable the refineries to produce Euro 5-compliant fuel domestically, potentially reducing Pakistan's reliance on imported petrol and diesel. This could lower fuel costs compared to imported products. The minister emphasized the importance of signing the agreements promptly to advance the upgrading process and pledged government support to address any implementation challenges.

Refinery executives confirmed they had completed necessary preparations and were ready to begin implementation. They also discussed their financial and operational performance, as well as steps taken to maintain operations during the Strait of Hormuz crisis. The minister underscored the significance of maintaining uninterrupted petroleum supplies and developing resilient supply chains for Pakistan's energy security.

He also reviewed progress on the proposed Oil City in Hub, an energy terminal and storage complex designed to bolster energy security, enhance trade connectivity, and support supply assurance. Malik reiterated that modernizing Pakistan's refining capacity would improve fuel quality and efficiency, strengthen domestic supply, reduce reliance on imported petroleum products, and support broader energy security objectives.