PRL to Double Refining Capacity and Produce EURO V Standard Fuel

Pakistan Refinery Limited (PRL) is set to finalize a supplemental agreement with the Oil and Gas Regulatory Authority (OGRA).

This agreement will kickstart a significant upgrade and expansion initiative that will double PRL’s refining capacity, increasing it from 50,000 barrels per day (bpd) to 100,000 bpd.

A key aspect of this project is its ability to enable PRL to manufacture EURO V standard fuel. This move will result in substantial annual savings for the company, as it will no longer face penalties for failing to meet environmental regulations.

PRL’s expansion efforts are aimed at ensuring its long-term sustainability. Plans include boosting Motor Spirit production by over six times, increasing High-Speed Diesel output threefold, and ultimately eliminating Furnace Oil from its product lineup. Failure to implement these upgrades could jeopardize the company’s future sustainability.

In the meantime, PRL remains focused on maintaining the sustainability of its current operations by prioritizing operational excellence. As a result, PRL not only met but exceeded production targets for the second quarter of 2023-24, showcasing a significant enhancement in its production capabilities and establishing new industry benchmarks.

Despite facing economic obstacles and experiencing decreased local demand for furnace oil, PRL continues to maintain strong financial performance. Following a record profit of Rs. 4.5 billion in the first quarter of this year, the company achieved a second-quarter financial close of Rs. 2 billion.

The cumulative profit for the past six months stands at Rs. 6.5 billion, marking the fourth consecutive year of profitability for PRL. This includes the company’s highest-ever profit of Rs. 12.5 billion in 2022.

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