Investments aimed at reducing role of imports and meeting future demand. Industry seeks to be exempt from turnover taxes.
Pakistani refineries have submitted plans for upgrades and other associated projects that could increase the countrys refining capacity to 19.34Mta from the current 12.93Mta, at a cost of US$9.89 billion, according to a working paper submitted to the federal government and seen by The News. The paper also states that the downstream industrys focus would be on upgrading capacity to 32.27Mta.
Forecasts put Pakistani demand for refined oil products at 34.4Mta by 202526, compared with the current 20Mta, which in 201011 was mostly served by 11.61Mt of imports. At present, Pakistans diesel and gasoline standards are pre-Euro, while India and China are importing Euro-III compliant diesel and are using Euro-IV specification gasoline.
The paper proposes immediate and short-term plans worth US$1.59 billion which would boost the countrys refining capacity by 5.9Mta. Byco Oil Pakistan Ltd (BOPL) will invest US$660 million installing platform isomerisation and diesel hydro desulphurisation (DHDS) units, along with an RO plant, single buoy mooring facility and LPG village. The programme is expected to boost its refining capacity by 5.4Mta.
Attock refinery will invest US$250 million in DHDS, isomerisation and pre-flash units, boosting capacity by up to 0.5Mta, while Byco Petroleum Pakistan Ltd (BPPL) is looking to spend US$90 million on an isomerisation unit. Pakistan Refinery Limited (PRL) is expecting to invest US$250 million in an isomerisation complex, DHDS and thermal gas oil unit. National Refinery Limited (NRL) is seeking to make investments of US$305 million for an isomerisation complex and DHDS. The working paper also said that Parco will invest US$35 million in an asphalt production plant, as it already has a DHDS unit.
In the medium and longer term, Pakistans refineries are looking to invest US$8.31 billion to add 19.34Mta of new capacity, of which US$5 billion will be spent in the construction of the Khalifa Coastal refinery, which will have a refining capacity of 11.2Mta.
ARL-II is looking to invest US$2 billion to boost refinery capacity to 2.3Mta, while the BOPL refinery is seeking to spend US$130 million on revamping and debottlenecking activities designed to increase capacity to 11.34Mta. Phase I and II of BOPL (chemical) are expected to be commissioned at a cost of US$275 million, the paper said.
Pakistans oil refineries have recently urged the federal government to exempt them from turnover taxes, while seeking a number of other incentives, to encourage investment in the sector and address the countrys energy shortage. A working paper submitted to the Ministry of Petroleum argued that the profitability of refineries has no relationship to their large turnover and is not applicable given that refineries do not operate on stable profit margins.
The paper also called for a similar incentive for all refineries that install isomerisation units before the target date of June 2014 and that projects aimed at producing lower sulphur diesel should receive financial support and incentives, given their lack of financial return.
Global Technology Forum - Pakistan refineries looking to invest US$9.9bn in new capacity and lower sulphur diesel
Pakistani refineries have submitted plans for upgrades and other associated projects that could increase the countrys refining capacity to 19.34Mta from the current 12.93Mta, at a cost of US$9.89 billion, according to a working paper submitted to the federal government and seen by The News. The paper also states that the downstream industrys focus would be on upgrading capacity to 32.27Mta.
Forecasts put Pakistani demand for refined oil products at 34.4Mta by 202526, compared with the current 20Mta, which in 201011 was mostly served by 11.61Mt of imports. At present, Pakistans diesel and gasoline standards are pre-Euro, while India and China are importing Euro-III compliant diesel and are using Euro-IV specification gasoline.
The paper proposes immediate and short-term plans worth US$1.59 billion which would boost the countrys refining capacity by 5.9Mta. Byco Oil Pakistan Ltd (BOPL) will invest US$660 million installing platform isomerisation and diesel hydro desulphurisation (DHDS) units, along with an RO plant, single buoy mooring facility and LPG village. The programme is expected to boost its refining capacity by 5.4Mta.
Attock refinery will invest US$250 million in DHDS, isomerisation and pre-flash units, boosting capacity by up to 0.5Mta, while Byco Petroleum Pakistan Ltd (BPPL) is looking to spend US$90 million on an isomerisation unit. Pakistan Refinery Limited (PRL) is expecting to invest US$250 million in an isomerisation complex, DHDS and thermal gas oil unit. National Refinery Limited (NRL) is seeking to make investments of US$305 million for an isomerisation complex and DHDS. The working paper also said that Parco will invest US$35 million in an asphalt production plant, as it already has a DHDS unit.
In the medium and longer term, Pakistans refineries are looking to invest US$8.31 billion to add 19.34Mta of new capacity, of which US$5 billion will be spent in the construction of the Khalifa Coastal refinery, which will have a refining capacity of 11.2Mta.
ARL-II is looking to invest US$2 billion to boost refinery capacity to 2.3Mta, while the BOPL refinery is seeking to spend US$130 million on revamping and debottlenecking activities designed to increase capacity to 11.34Mta. Phase I and II of BOPL (chemical) are expected to be commissioned at a cost of US$275 million, the paper said.
Pakistans oil refineries have recently urged the federal government to exempt them from turnover taxes, while seeking a number of other incentives, to encourage investment in the sector and address the countrys energy shortage. A working paper submitted to the Ministry of Petroleum argued that the profitability of refineries has no relationship to their large turnover and is not applicable given that refineries do not operate on stable profit margins.
The paper also called for a similar incentive for all refineries that install isomerisation units before the target date of June 2014 and that projects aimed at producing lower sulphur diesel should receive financial support and incentives, given their lack of financial return.
Global Technology Forum - Pakistan refineries looking to invest US$9.9bn in new capacity and lower sulphur diesel
