Karachi September 27 2024: Pakistan Refinery targets for commissioning and start-up of production from upgraded refinery in 2028.
PRL continues to make significant strides in its endeavor towards the completion of Refinery Expansion and Upgrade Project (REUP), which aims to double its crude processing capacity and upgrade the refinery’s technology to maximise middle distillate production and eliminate furnace oil output, according to company annual accounts.
This transformative project is central to PRL’s long-term strategy, ensuring a profitable and sustainable future while positioning the refinery on par with world-class standards.
The REUP targets an increase in crude processing capacity from 50,000 bpd to 100,000 bpd and involves upgrading PRL from a hydro-skimming configuration to a state-of-the-art deep conversion Refinery. The upgraded facility will produce cleaner, environmentally friendly fuels, including EURO V compliant HSD and MS, while drastically reducing the production of HSFO. This shift represents a pivotal move towards sustainability and profitability.
Wood Group UK Limited, the Front-End Engineering Design (FEED) contractor, is finalising the FEED utilising proven state-of-the-art technologies Including Residue Fluidised Catalytic Cracker (RFCC), the core refinery unit, that will play a key role in converting furnace oil into higher-value products such as MS, HSD, Propylene and other valuable distillates. The use of this advanced technology aligns with PRL’s goal of enhancing operational efficiency and environmental responsibility.
A major milestone in the FEED phase has been the successful completion of Process Design Packages for all Licensed Units, developed by UOP (USA) and Axens (France), further demonstrating PRL’s commitment to adopting best-in-class technology. The FEED phase is expected to be completed in Q2 2024-25.
Another key milestone in REUP execution is the issuance of the Invitation to Tender (ITB) package for the Engineering, Procurement, Construction and Financing (EPCF) phase of the REUP. Bids are expected by December 2024, followed by the Financial Close and Final Investment Decision (FID) and the EPC award, with commissioning and start-up targeted in 2028.
REUP has sound financial outlook, indicating strong economic viability and a robust Internal Rate of Return (IRR) based on independent price studies and forecasts. PRL’s brownfield strategy, which leverages the existing site and infrastructure, continues to offer significant cost and time advantages compared to a greenfield facility, further enhancing the project’s feasibility and attractiveness to potential investors.
As the Refinery progresses towards the completion of this transformative project, it remains steadfast in its commitment to delivering a refinery that meets the highest standards of profitability, environmental responsibility, and operational excellence
