PRL to invest $1bn to upgrade refinery

Published March 2, 2019
Plans to convert refinery into a deep conversion refinery; achieve govt’s requirement to produce EURO II standard diesel. — Reuters/File
Plans to convert refinery into a deep conversion refinery; achieve govt’s requirement to produce EURO II standard diesel. — Reuters/File

KARACHI: Pakistan Refinery Ltd (PRL) has announced its plan to invest $1 billion in “refinery upgrade project”, according to a press release issued by the company on Friday.

The release noted that the PRL plans to convert its refinery into a deep conversion refinery along with achieving compliance the government’s requirement to produce EURO II standard diesel.

The PRL informed the exchange that a detailed feasibility study was carried out by renowned international consultants which entailed evaluation of different technological variants, technical and financial viability to carry out the project.

The company has decided to invite expression of interest from world-renowned engineering contractors for appointment as Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) contractors for the project.

Thereafter, competitive bids will be invited from the pre-qualified FEED and EPC contractors.

PRL said the $1bn estimate is a broad number and a more reliable estimate of total investment amount will be confirmed after completion of FEED, followed by financial close of the project and EPC execution.

The company noted that this project would significantly improve company’s profitability besides providing significant foreign exchange savings for the country.

Published in Dawn, March 2nd, 2019

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