Upgradation policy: Oil refiners say committed to signing accords

Islamabad: Pakistan's oil refineries have restated their commitment to signing accords under the Refinery Upgradation Policy, promising to unlock around USD 6 billion in investment for the country's refining sector. Federal Minister for Petroleum, Ali Pervaiz Malik, held discussions with the management of Pakistan's five major refineries - Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico, and Attock Refinery Limited (ARL) - to assess progress on implementing the Brownfield Refinery Upgradation Policy, as well as the refineries' financial and operational performance and measures to bolster Pakistan's energy security.

All five refineries confirmed their willingness to sign the accords, set to be finalized soon. The accords are expected to inject approximately USD 6 billion into Pakistan's refining sector. Federal Minister Malik emphasized the importance of refinery upgradation for the long-term viability of the country's refining sector, citing that upgraded refineries would be able to produce Euro 5-compliant fuel domestically, decreasing dependence on imported petrol and diesel and potentially lowering prices.

The minister stressed that timely signature of the agreements was crucial for advancing the upgradation program and affirmed the government's support in addressing any policy implementation issues. During a separate meeting with PARCO management, the minister praised the company's effective operations management during the Strait of Hormuz crisis, during which Pakistan maintained uninterrupted petroleum supply.

He highlighted the significance of maintaining supply continuity and resilient supply chains in ensuring energy security. In meetings with PRL, Cnergyico, NRL, and ARL, the minister discussed impediments to implementing the New Refinery Upgradation Policy, noting that all respective managing directors confirmed their refineries were ready to sign the accords, marking the first step towards policy implementation.

The minister reiterated his commitment to collaborating with the refining industry to ensure the timely execution of the policy and facilitate the necessary investments for the sector's modernization.