New refining policy to slash furnace oil output by 78%

The output of all refiners producing furnace oil, a high-sulfur fuel, will be reduced by 78% to 3,400 tonnes per day under Pakistan’s recently adopted Brownfield Refining Policy from the present level of 15,500 tonnes per day.

After upgraded local refineries generate more petrol and diesel from crude oil than fuel oil, the policy calls for a drastic reduction in the capacity of all refineries to produce fuel oil.

All current refineries are encouraged to upgrade, modernise, and expand (upgrade project) their refineries in order to produce environmentally friendly fuels that meet Euro-V specifications and to maximise the production of motor gasoline and diesel while minimising the production of furnace oil (FO)/other fuels, according to the policy document.

“Under this Policy, refineries that pledge to improve are eligible for incentives. The concerned refineries will decide on the equipment, technology, or method from project to project.

The document states that Pak Arab Refinery Limited’s (PARCO) current daily capacity of 3,290 tonnes of fuel oil would be reduced by 212 tonnes per day.

From its present 1,024 tonnes per day, Attock Refinery Limited’s (ARL) FO production capacity will decrease to 908 tonnes per day. The FO production capacity of Pakistan Refinery Limited (PRL) will decrease from 1,350 tonnes per day to 167 tonnes per day.

The National Refinery Limited (NRL) would reduce its current capacity of 2,253 tonnes per day of fuel oil output to 1,127 tonnes per day. The daily FO production capacity of Cnergyico Pakistan Limited (CPL) will decrease from 7,500 to 1,000 tonnes.

On the other hand, after the local refineries are renovated in accordance with the plan, the production of petrol and diesel would be significantly higher. The current 5,600 tonnes per day of diesel production capability at PARCO will increase to 8,082 tonnes per day.

Diesel output at ARL will essentially stay the same. From the current 1,350 tonnes per day, PRL will produce 6,111 tonnes per day. In the post-upgradation era, the diesel production capacity of NRL will increase from the current 2,253 tonnes per day to 4,087 tonnes per day and that of CPL will increase from the current 8,500 tonnes per day to 11,000 tonnes per day.

The daily capacity of petrol production at PARCO will increase from 3,678 tonnes to 5,493 tonnes, while daily petrol output at ARL will increase from 1,923 tonnes to 2,379 tonnes.

When PRL’s daily petrol production capacity increases from the current 783 tonnes to 4,854 tonnes, it will experience a significant increase.

Similarly, NRL will have a big benefit once its daily petrol production increases to 2,025 tonnes from 818 tonnes. The current 3,500 tonnes per day of petrol production capability at CPL will increase to 6,500 tonnes per day.

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