960405

Four refineries to be commissioned by 2000

Pakistan's oil refining

capacity to go up to

31m tonnes per year

by 2000

HARIS ZAMIR

KARACHI: Pakistan will have an oil refining capacity of 31 million tonnes per year following the expansion in the existing capacity and the coming on line of another four units by the year 2000.

The existing capacity of three refineries - National Refinery Ltd., Pakistan Refinery Ltd. and Attock Refinery Ltd. is about seven million tonnes per annum. By mid-1997, these refineries would enhance their capacity to 8.5 million tonnes.

It is learnt that four refineries are presently under construction with a total capacity of nearly 22.50 million tonnes, at an estimated cost of $3.056 billion. Pak-Iran Refinery and Schon Refinery will be set up at Port Qasim with a capacity of six million tonnes and 1.50 million tonnes respectively.

These two refineries are expected to be built at a cost of $1.100 billion and $300 million.

Equipment for the Pak-Iran refinery will be manufactured in Iran, and it is to be completed by the 2000. Schon Refinery is a joint venture with an American-based firm Hobbs Bannerman under a turnkey contract with Schon Group.

Parco Mid country oil refinery is a joint venture with UAE, which will be commissioned in 1999. The estimated cost of the refinery is $756 million, and it would have a refining capacity off 4.5 million tonnes, is located at Mahmood Kot near Multan.

PSO Refinery, a Pakistan State Oil joint venture with Kuwait and South Korea's Hyundai corporation, which will set up at Badin with an investment of $800 million.

Sampak Refinery is a Sampak Group joint venture with Matrotech Texas of the USA The estimated cost of the project is $1 billion. This refinery would have a capacity of six million tonnes.

Reports indicate that the distinguishing feature of this downstream unit situated in Karachi is its total reliance on foreign investment as the US-led consortium has committed the entire cost of the project. The 125,000-barrels per-day capacity would cater to the total requirement of refined oil of various grades and by-products and by the next century, it will also earn foreign exchange by providing refining facilities to other countries of the region.

According to a source the Federal Government is considering to waive 10 to 40 percent profitability limit for existing oil refineries. The action is being taken after considering the high capital cost and relatively small differential between international prices of crude and POL products between fuel oil and middle distilates. With waiver of profitability limit, the existing refineries could retain income earned from non-refinery operations.

Sources indicate that the refineries of Schon Group and PSO would be geared to refine waxy crude from Sindh. Both these units will save millions off dollars in foreign exchange as high-wax-content crude oil procured from Badin has to be sent to Singapore for refining.

The existing units are also on their way towards extensive expansion. Pakistan Refinery will increase its capacity to 2.7 from 2.1 million tonnes at a cost of $53 million in consultation with Foster Wheeler Energy Limited. The 20 percent equity of $53 million expansion will be raised by the company from its shareholders in the form of right or bonus shares.

Meanwhile, Attock Refinery is proceeding with the work on the upgradation and expansion plant. The company has selected Universal Oil Products of USA for providing the technology for the 5,000 barrels per day catalytic reformer and work on the basic engineering design has commenced.

Pakistan Refinery is actively engaged in plans for putting up an Isomerisation Unit to produce Motor Gasoline. In addition, National Refinery will generate 7.5 MW electricity by utilising high pressure steam internally available and it is expected that it may be completed in third quarter of the running year.