PRL Receives Bids for Refinery Expansion Project

Pakistan Refinery Limited (PRL) has formally received bids from various entities vying to manage the Engineering, Procurement, Construction, and Finance (EPCF) aspects of its Refinery Expansion and Upgrade Project (REUP).

The refinery, a critical component of Pakistan’s energy infrastructure, communicated this development to the Pakistan Stock Exchange (PSX) through an official notification on Monday.

The notification stated, “PRL has received Engineering, Procurement, Construction & Finance (EPCF) bids for its Refinery Expansion & Upgrade Project (REUP). PRL is currently assessing these EPCF bids and will provide further updates as and when necessary.”

PRL, situated in Karachi, operates as a hydro-skimming refinery. Since its establishment in 1960, it has been processing both imported and local crude oil, transforming it into products like furnace oil, diesel, kerosene, jet fuel, and gasoline. The refinery currently has a daily processing capacity of 50,000 barrels.

The refinery’s operations are divided between two locations: its primary facility at Korangi Creek and its crude oil berthing and storage facilities at Keamari.

With an estimated investment of $1.7 billion, PRL is leading the Refinery Expansion & Upgrade Project (REUP). This initiative aims to double the crude processing capability from the existing 50,000 to 100,000 barrels per day and to eliminate the production of high sulphur furnace oil (HSFO) within five years of the project’s financial closure.

The project seeks to completely halt furnace oil production, focusing instead on maximizing the output of more valuable products like petrol and diesel, adhering to Euro V standards.

Earlier in February, PRL’s board sanctioned a loan of Rs3.15 billion from its parent organization, Pakistan State Oil Limited (PSO), to fund the Front-End Engineering Design (FEED) phase of the REUP.