A hydro skimming refinery, Pakistan Refinery Limited continues to set industry standards with significant strategic advancements that underscore its commitment to growth and sustainability. This year, the focus has been on the Refinery Expansion and Upgrade Project (REUP) and deepening community engagements, positioning the refinery at the forefront of the energy sector’s evolution. MD and CEO Zahid Mir discussed investments and expansion.
Pakistan Refinery Limited (PRL) has begun plans for its Refinery Expansion and Upgrade Project (REUP). REUP is a major initiative for the company, aiming to double the refinery’s crude processing capacity and drive further growth. This will allow PRL to serve the energy needs of Pakistan efficiently, reliably and cost-effectively.
Established in 1960, PRL is located on the coastal belt of Karachi, Pakistan. The refinery has two sites, a main processing facility in Korangi Creek, as well as a crude berthing and storage facility in Keamari. With the
capacity to process approximately 50,000 barrels of crude oil a day, the refinery is the principal manufacturer and supplier of petroleum products to the domestic market and Pakistan’s defence forces.
“Through REUP we are not just expanding capacity; we are setting a new standard for efficiency and environmental responsibility in the industry,” said MD and CEO Zahid Mir. “This project epitomises our commitment to meet the growing energy demands of Pakistan with solutions that are both innovative and sustainable.
“Our vision is to be the refinery of first choice for all of our stakeholders. We aim to produce top-quality and environmentally sustainable products through safe operations, state-of-the-art technology and premium human resources.”
Upgrading facilities
In 2022, Wood Group UK Limited was chosen to lead the front-end engineering design of PREUP, a substantial $1.8 billion project aimed at doubling PRL’s processing capacity to 100,000 barrels of crude oil per day. This upgrade from hydro skimming to deep conversion technology will allow the company to produce cleaner, EURO V standard fuels, significantly reducing
the environmental impact of high-sulphur furnace oil.
This project is a leap towards environmental sustainability, transforming PRL’s operations to produce lower emission fuels such as high-speed diesel and motor spirit. It will also enable the production of propylene, a key raw material for the petrochemical industry, bolstering the company’s commitment to eco-friendly industrial growth.
REUP will greatly benefit the region, offering a range of employment opportunities in a specialised sector. Featuring state-of-the-art technology, the project will foster employee skills development and provide an environment for the local workforce to grow and succeed.
Working with refinery technology companies Honeywell
UOP and Axens, PRL will utilise stateof-the-art equipment within the project.
The equipment will facilitate bottom-ofthe-barrel conversion, naphtha processing, as well as gasoline and diesel upgrading.
Honeywell UOP will provide the residue fluidised catalytic cracking process, the LPG Merox process and a naphtha complex, featuring a naphtha hydrotreater and a CCR Platforming unit. Axens will supply Prime G+®, Prime D™ and Polynaphtha™ to achieve Euro V gasoline and diesel specifications.
The company has engaged with leading engineering, procurement, and construction (EPC) contractors and prominent financial institutions, facilitating significant progress in the project. REUP has reached the EPC-ready stage, and PRL is currently in the process of appointing an EPC contractor to advance to the next phase of development.
Supporting community
Additionally, PRL is committed to supporting communities through CSR initiatives, including donation work and supporting the less privileged. When Sindh experienced floods in 2022, the company made a donation of emergency relief medicines worth Rs10 million.
In response to the devastating floods in Sindh in 2022, PRL contributed emergency relief medicines valued at Rs10 million. This aid was directed towards the hardest-hit areas, with PRL’s team visiting Sindh Rangers Hospital to ensure the timely dispatch of these critical supplies.
PRL’s enduring partnership with The Citizens Foundation, marked by a 10-year
Memorandum of Understanding, reflects a sustained commitment to education. This agreement supports the operational needs of the Professor Amanet Ali campus in Korangi, accommodating two shifts of students each day. In the 2023-24 academic year, PRL contributed Rs9.42 million, significantly enhancing educational access and opportunities for underprivileged children in the area.
“Education, healthcare and community development are pivotal pillars of our corporate social responsibility strategy,” remarked Mr Mir. “Our comprehensive support, including our long-standing partnership with The Citizens Foundation and significant contributions to healthcare initiatives, exemplifies our commitment to fostering sustainable community growth and building a brighter future for all.”
PRL’s CSR initiatives, such as its substantial donations and strategic partnerships, are integral to the company’s core business philosophy. These efforts not only address immediate community needs but also align with PRL’s broader strategy to foster sustainable community development.
Creating progress
Over the years, PRL has built many longstanding relationships with suppliers. Through open communication and regular scheduling, the company is able to successfully import crude oil from international suppliers such as ADNOC and NIOC. Using software including the Process Industries Modelling System and Crude Manager LE, PRL is able to run the refinery at optimum levels and control operations effectively.
In 2023, PRL and OGDCL, the leading E&P player in Pakistan, signed a MoU to connect the two entities. The MoU with OGDCL aims to leverage the joint capabilities of companies in exploration and production, enhancing resource efficiency and technological exchange.
This partnership is expected to catalyse significant advancements in the energy sector, directly contributing to national energy self-sufficiency and economic stability. With both companies being prominent figures in Pakistan’s energy industry, this MoU will have a transformative impact on the sectors growth.
PRL has also partnered with the Sindh government to create a forest around the refinery. The reforestation initiative around the refinery aims to plant over 150,000 native trees by 2025, significantly contributing to local biodiversity, carbon sequestration, and ecological restoration.
This project not only combats deforestation but also serves as a vital green buffer, enhancing the local climate and providing community recreational spaces. Not only will the forest mitigate global warming impacts and improve air quality, it will also promote the well-being of local people. Providing a green space for the community, the forest encourages the sustainable use of land.
Moving forward, PRL is strategically positioned to continue fostering partnerships across the industry to bolster economic growth, social development and environmental sustainability. These collaborations are integral to the company’s mission of shaping a resilient energy future for Pakistan, aligning with broader corporate objectives to enhance operational efficiencies and community well-being.
By integrating advanced process modelling systems and operational technologies, PRL ensures peak operational performance, aligning with international best practices and standards. REUP will significantly drive progress for the company, expanding capacity and opportunities for growth. With various environmental and social initiatives underway, PRL hopes to positively transform communities and the environment. n
