Karachi September 27 2021: Refinery projects involve huge capital investment and accordingly under the prevailing circumstances a very careful approach is needed to start a new project, as per National Refinery Limited.
However, NRL is continuing to study the possibility of installing the following Hydrocraker, Continuous Catalyst Regeneration platforming Unit and turnaround of fuel refinery.
A L S O || R E A D
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Hydrocracker / Bottom of Barrel upgrade
Upgradation of Furnace Oil to value added products requires a huge capital investment. NRL along with other refineries have jointly undertaken a study for the feasibility of a joint plant. The study has already been awarded to M/s Advisian of UK. It is expected that the study will be finalized by December 2021. Based on the outcome of the study a future course of action will be decided.
CCR (Continuous Catalyst Regeneration) Platforming Unit
To increase the Gasoline production and to meet the country’s Gasoline Euro-V
specifications, Company is planning to install a CCR (Continuous Catalyst Regeneration)
Platforming unit along with other associated units. The project is in planning phase.
Turnaround of Fuel Refinery
Turnaround of Fuel Refinery, including phase-I units is planned in December 2021 as a mandatory activity so as to keep the refinery operating. This will result in continuous production at optimum level and reducing frequent maintenance requirements.
ONGOING PROJECTS – Replacement of Utilities Control System with centralized Distributed Control Systems
Replacement of existing control system of Utilities with Distributed Control System (DCS) is in progress which will ensure high-integrity process controls, process safeguarding and emergency shutdown. It will also improve process control and monitoring of boilers parameters, availability of customized reports and log sheets and optimum Human resource utilization. Distributed Control System (DCS) has been installed successfully at Boiler V and VII whereas, installation at boiler VI is expected to be completed by June 2022.
COMPLETED PROJECTS-Two stage unit revamp at Lube-I refinery
Despite financial constraints your company successfully completed revamp of its two stage distillation unit of Lube-I Refinery in September 2020. This has resulted in enhancement of installed crude oil processing capacity of Lube-I refinery from 12,050 Barrel per stream day (bpsd) to 17,000 bpsd and vacuum fractionation capacity from 5,200 bpsd to 6,600 bpsd.
PRICING FORMULA
The Company’s Fuel Segment is regulated by Government under the Import Parity Pricing Formula. However, effective September 01st, 2020, the Government has introduced fortnightly pricing mechanism whereby prices are based on Arab Gulf daily FOB average for the number of days in the pricing period to be taken as base commodity price.
In 2012-13, price of HSD was also de-regulated and linked with PSO import price, which NRL became entitled to effective July 2017 post completion of DHDS project. Effective January 01, 2021 NRL is producing HSD Euro-V and is entitled for its price based on Import Parity Price and PSO import incidentals.
According to the Import Parity Pricing formula, the distribution of profits from Fuel Segment is restricted to 50% of the paid-up capital as of July 1, 2002 and the remaining amount is to be transferred to special reserves. Refineries are not allowed to adjust losses from special reserves till the completion of up-gradation projects. As the company has completed the projects as specified by the Government, it is considered that the losses shall be offset from special reserves in future.
