Oil, Gas and Refinery Sectors - updates

[hydrabadi_arab]

Govt’s shareholding in OGDCL rises to 77.53% after BESOS share transfer​

OGDCL says 432.19 million shares held by Employees Empowerment Trust have been transferred back to the Government of Pakistan


Oil and Gas Development Company Limited has informed the Pakistan Stock Exchange and the London Stock Exchange that 432,189,039 ordinary shares held by the OGDCL Employees Empowerment Trust have been transferred back to the Government of Pakistan.

In a notice dated July 9, 2026, the company said the transfer was made in line with the Supreme Court of Pakistan’s decision in cases relating to the Benazir Employees Stock Option Scheme.

Following the transfer, the Government of Pakistan’s direct shareholding in OGDCL has increased from 67.48% to 77.53%.


According to the notice, the shares were transferred to the President of the Islamic Republic of Pakistan on July 8, 2026, at a price of Rs 0 per share.

The government’s cumulative holding after the transfer stands at 3,334,337,220 shares, representing 77.53% of the company.

 

[hydrabadi_arab]

 

[ghazi52]

Port Qasim executes historic monsoon operation to avert national power crisis​

• Operation involved guiding S K Resolute through 49-km-long navigational channel

July 12, 2026
BR Web Desk



The Port Qasim Authority (PQA) has successfully navigated and berthed a massive liquefied natural gas (LNG) carrier under severe monsoon conditions, averting a looming national energy shortfall.

The high-risk emergency operation involved guiding the S K Resolute through a 49-kilometre-long navigational channel amid extreme weather on Saturday.

The crisis arose after escalating regional tensions forced two scheduled QatarEnergy vessels to cancel their deliveries under Force Majeure. Facing a severe fuel deficit during peak summer demand, Pakistan LNG Limited (PLL) managed to secure an emergency spot cargo already in transit, PQA Public Relations Officer Asad Altaf Hussain Warsi said in a statement.

Operating at the absolute limits of the port’s navigational capacity, the PQA operations team executed a highly complex maneuver to safely dock the vessel. The S K Resolute arrived carrying 171,951 cubic metres of LNG, making it the largest single LNG cargo ever handled at the PGPCL terminal. With a beam width of 47.8 metres, it also stands as the widest LNG carrier ever managed at Port Qasim during the monsoon season.

The PQA said this landmark maritime achievement has secured an uninterrupted supply of critical gas to the national transmission system. The successful operation has stabilised the country’s power grid, ensuring continued electricity supply to millions of households and industrial units across Pakistan.

Bloomberg on July 9 reported that Pakistan was urgently seeking to secure an LNG cargo after renewed hostilities in the Strait of Hormuz disrupted supplies from Qatar, forcing the country back into the costly spot market.

State-owned Pakistan LNG Ltd (PLL) had issued a tender to purchase an LNG cargo for delivery on July 15-16, with bids due on Friday, according to a notice published on the company’s website

 

[hydrabadi_arab]

The $6 Billion Fix: How Upgrading Refineries Will Transform Pakistan's Economy​

Pakistan’s energy sector is at a critical juncture. Despite having an installed oil refining capacity of 21 to 23 million tonnes annually, the country spends billions of dollars importing refined petroleum products. The root of this paradox lies in outdated technology: domestic plants are largely traditional hydro-skimming facilities forced to operate at less than 50% capacity due to the overproduction of unwanted furnace oil.

1. Eliminating the Furnace Oil Bottleneck​

Currently, domestic refineries are trapped in a cycle of inefficiency. Producing basic fuels leaves them burdened with excess furnace oil, a byproduct for which domestic demand has virtually disappeared due to shifts in power generation.

The $6 billion upgrade will convert these aging plants into deep-conversion refineries. This technological leap allows refineries to extract maximum high-value petrol and diesel from every barrel of raw crude, effectively eradicating the furnace oil bottleneck and allowing plants to run at nearly 100% capacity.

2. From Import Reliance to Exporting Surplus​

By upgrading to deep-conversion technology and expanding physical capacity, Pakistan will drastically alter its fuel supply dynamics. The modernization will double domestic petrol output and increase diesel production by nearly half, completely covering domestic demand.
Projected Production vs. Consumption (Post-Upgrade)

Product	FY26 Consumption	Post-Upgrade Capacity	Net Balance
High-Speed Diesel (HSD)	~6.85 million MT	~11.42 million MT	+ 4.57 million MT (Surplus)
Motor Spirit (MS/Petrol)	~7.68 million MT	~7.76 million MT	+ 0.08 million MT (Surplus)
Total Refined Imports Needed	6.70 million MT	0 MT	100% Import Substitution

3. Massive Foreign Exchange Savings​

In recent years, Pakistan has spent upwards of $16 billion annually on fuel imports. A large portion of this goes toward paying the premium for pre-refined Euro-V fuels.

The economic windfall from this upgrade comes from keeping the "refining margin" inside the country:

• Import Substitution: By importing cheaper raw crude instead of expensive refined diesel and petrol, Pakistan will wipe out millions of tonnes of refined imports.
• Export Revenue: The massive 4.5+ million MT surplus of Euro-V diesel becomes a highly lucrative export commodity.
• Total Financial Impact: Based on average historical refining margins (crack spreads), shifting from importing refined products to refining crude domestically—plus exporting the surplus—is projected to yield approximately $1.7 billion in net foreign exchange savings annually.

4. Long-Term Energy Security​

Beyond immediate financial relief, the upgrade program creates a resilient energy buffer.

• Future-Proofing Capacity: While the initial upgrade targets the existing 21–23 million MT base, ongoing expansions mapped out in the policy framework are projected to push Pakistan's total refining capacity to 33 million tons per year by 2035.
• Shielding from Geopolitics: By reducing the necessity to import refined products, Pakistan isolates its domestic fuel supply from global supply chain shocks, such as those triggered by the recent US-Iran conflicts.
• Environmental Upgrades: The mandatory shift to Euro-V standards aligns Pakistan with global environmental compliance, drastically improving urban air quality and reducing long-term public health and vehicle maintenance costs.

The Bottom Line: The $6 billion modernization is not merely a structural upgrade; it is a macroeconomic necessity. By resolving outstanding tax frameworks and executing these expansions, Pakistan can successfully stop hemorrhaging foreign exchange reserves, eliminate fuel import dependency, and establish itself as a net exporter of high-grade petroleum products.

 

[hydrabadi_arab]

The $6 Billion Fix: How Upgrading Refineries Will Transform Pakistan's Economy​

Pakistan’s energy sector is at a critical juncture. Despite having an installed oil refining capacity of 21 to 23 million tonnes annually, the country spends billions of dollars importing refined petroleum products. The root of this paradox lies in outdated technology: domestic plants are largely traditional hydro-skimming facilities forced to operate at less than 50% capacity due to the overproduction of unwanted furnace oil.

1. Eliminating the Furnace Oil Bottleneck​

Currently, domestic refineries are trapped in a cycle of inefficiency. Producing basic fuels leaves them burdened with excess furnace oil, a byproduct for which domestic demand has virtually disappeared due to shifts in power generation.

The $6 billion upgrade will convert these aging plants into deep-conversion refineries. This technological leap allows refineries to extract maximum high-value petrol and diesel from every barrel of raw crude, effectively eradicating the furnace oil bottleneck and allowing plants to run at nearly 100% capacity.

2. From Import Reliance to Exporting Surplus​

By upgrading to deep-conversion technology and expanding physical capacity, Pakistan will drastically alter its fuel supply dynamics. The modernization will double domestic petrol output and increase diesel production by nearly half, completely covering domestic demand.
Projected Production vs. Consumption (Post-Upgrade)

Product	FY26 Consumption	Post-Upgrade Capacity	Net Balance
High-Speed Diesel (HSD)	~6.85 million MT	~11.42 million MT	+ 4.57 million MT (Surplus)
Motor Spirit (MS/Petrol)	~7.68 million MT	~7.76 million MT	+ 0.08 million MT (Surplus)
Total Refined Imports Needed	6.70 million MT	0 MT	100% Import Substitution

3. Massive Foreign Exchange Savings​

In recent years, Pakistan has spent upwards of $16 billion annually on fuel imports. A large portion of this goes toward paying the premium for pre-refined Euro-V fuels.

The economic windfall from this upgrade comes from keeping the "refining margin" inside the country:

• Import Substitution: By importing cheaper raw crude instead of expensive refined diesel and petrol, Pakistan will wipe out millions of tonnes of refined imports.
• Export Revenue: The massive 4.5+ million MT surplus of Euro-V diesel becomes a highly lucrative export commodity.
• Total Financial Impact: Based on average historical refining margins (crack spreads), shifting from importing refined products to refining crude domestically—plus exporting the surplus—is projected to yield approximately $1.7 billion in net foreign exchange savings annually.

4. Long-Term Energy Security​

Beyond immediate financial relief, the upgrade program creates a resilient energy buffer.

• Future-Proofing Capacity: While the initial upgrade targets the existing 21–23 million MT base, ongoing expansions mapped out in the policy framework are projected to push Pakistan's total refining capacity to 33 million tons per year by 2035.
• Shielding from Geopolitics: By reducing the necessity to import refined products, Pakistan isolates its domestic fuel supply from global supply chain shocks, such as those triggered by the recent US-Iran conflicts.
• Environmental Upgrades: The mandatory shift to Euro-V standards aligns Pakistan with global environmental compliance, drastically improving urban air quality and reducing long-term public health and vehicle maintenance costs.

The Bottom Line: The $6 billion modernization is not merely a structural upgrade; it is a macroeconomic necessity. By resolving outstanding tax frameworks and executing these expansions, Pakistan can successfully stop hemorrhaging foreign exchange reserves, eliminate fuel import dependency, and establish itself as a net exporter of high-grade petroleum products.

Finally $6bn upgradation policy is approved. Pakistan would have been exporter of refined petrol now if this was done early. Watch out India, we are coming for your share.

 

[ghazi52]

Govt finally revamps oil refining policy; what does it mean?​

Khaleeq Kiani
July 28, 2026



An undated image of a refinery of Pak-Arab Refinery Limited (Parco). — Parco

ISLAMABAD: After six years of deadlock, the government on Tuesday approved the Brownfield Refining Policy to modernise the country’s petroleum refineries with an estimated investment of about $6bn to improve product quality and increase production.

The policy — approved by the Cabinet Committee on Energy (CCoE) led by Prime Minister Shehbaz Sharif — provides stability clauses to protect investment, gives tax incentives and foreign exchange accounts for imports of machinery against export of furnace oil, besides enhancing both offshore and onshore storage for greater energy security.

The policy, revised by amending the original 2023 legislation, now supersedes all previous refining policies.

Under the Brownfield Refining Policy, the five existing refineries will make improvements in product quality, quantity and product mix through upgradation.

As such, the total production of motor spirit (petrol) and high-speed diesel (HSD) will significantly improve, and that of furnace oil will reduce.

This means the total petrol production would increase by 72pc to 18,400 tonnes per day (TPD) from the current 10,700 TPD. HSD output would rise by 39 per cent to 29,520 TPD from 21,240 TPD, while furnace oil production would drop by 63pc to 5,714 TPD from 15,417 TPD at present.

All existing refineries are to upgrade/modernise/expand (Upgrade Project) their refineries to produce environmentally friendly fuels as per Euro-V emission specifications and to maximise production of motor gasoline, diesel or other value-added products, if any, by minimising furnace oil/other fuels.

Euro V standards permit only 10 parts per million (ppm) of sulphur in gasoline and diesel. Euro IV allows 50 ppm while Euro III allows 150 ppm in gasoline and 350 ppm in diesel.

The refineries that commit to the Upgrade Project shall be entitled to incentives under the newly approved policy. The selection of equipment, technology or process will be on a project-to-project basis by the concerned refineries.

 

[ghazi52]

Refineries shall be allowed to sell their products to any oil-marketing companies (OMCs) licensed by the Oil and Gas Regulatory Authority (Ogra). Refineries will be allowed to export surplus petroleum products with respect to domestic demand subject to approval of Ogra.

There shall be binding agreements between the refineries and OMCs for sale/purchase of major products (motor gasoline and HSD) based on product review meetings to ensure a smooth oil supply chain.

The Petroleum Division will notify the Euro-V fuel specifications for compliance after the upgradation of refineries within one month from now.

In case the government decides to improve the fuel specification beyond Euro-V, the timelines for applicability of the revised specification shall be devised and notified as required

 

[ghazi52]

Pakistan’s petroleum sales jump 23% YoY in July amid cheaper fuel & agri boom​

• FO sales surged 406% YoY to 0.08 million tons in July

August 3, 2026
BR Web Desk

Pakistan’s petroleum product sales rose sharply in July 2026, with total volumes increasing 23% year-on-year (YoY) to 1.51 million tons, driven by multiple factors, including lower fuel prices and a gradual economic recovery, according to a report by Arif Habib Limited (AHL) released on Monday.

“The YoY surge was primarily driven by lower fuel prices, improved farm economics, stronger agricultural activity, and a gradual recovery in economic and auto sector demand,” the brokerage said.

Excluding furnace oil (FO), oil marketing companies’ (OMCs) sales climbed 18.5% YoY, marking the strongest July performance since July 2021.

 

[ghazi52]

High-speed diesel (HSD) volumes increased 19% YoY to 0.62 million tons, while motor spirit (MS), commonly known as petrol, rose 23% YoY to 0.73 million tons.

Meanwhile, FO sales surged 406% YoY to 0.08 million tons, which AHL attributed “primarily to higher furnace oil consumption for power generation”.

On a month-on-month (MoM) basis, total petroleum sales increased 20%, “supported by lower domestic petroleum prices following the decline in global oil prices amid easing geopolitical tensions”.

MS sales rose 12% MoM, while HSD volumes climbed 25%. FO sales also increased 89% over the previous month, “which we attribute to higher seasonal demand for power generation during the summer months,” said AHL.

Among oil marketing companies, Pakistan State Oil (PSO) outperformed the sector, with total sales rising 38% YoY to 702,000 tons, led by a 44.1% increase in MS sales and a 40.3% rise in HSD offtake.

AHL said PSO captured market share from Gas & Oil Pakistan (GO), whose MS market share fell to 5%, the lowest since June 2024, while its HSD market share declined to 7%, the lowest since May 2024.

Separately, AHL estimated the government collected around Rs134 billion in Petroleum Development Levy (PDL) during July, keeping collections broadly on track to achieve the FY27 target of Rs1.68 trillion, which is 11.9% higher than the revised FY26 target.