The Pakistan Refinery Ltd (PRL) has decided to invest $1.2 billion to upgrade and expand its production capacity. The project will double the refining capacity to 100,000 barrels per day. The daily petrol production will increase from 750 tonnes to 4,000 tonnes, and the diesel production will rise from 2,000 to 5,000 tonnes. The objectives of this project are producing Euro V and VI- compliant diesel and petrol, increasing overall refining capacity, and reducing the production of furnace oil. The cost of this project will be provided by the Pakistan State Oil (PSO), commercial banks, and the remaining financial help will be given by the foreign sources in the form of debts.
The oil and gas sector contributes a significant share of the country’s GDP and can play a key role in boosting the economy of Pakistan. The dependence on oil and gas will increase as the country’s infrastructure is heavily built on petroleum-based products which will increase their consumption in the future. The Government of Pakistan is determined to increase its output to 100,000 barrels. Due to its modest petrol production, the country is dependent on petroleum imports to satisfy its domestic demand. The government is trying to provide better and competitive opportunities in the oil and gas sector that should meet the international standards to attract foreign investment in the country.
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