PM Shehbaz Approves $6 Billion Refinery Upgrades Plan

Owaiz said:
I mean they literally said they have selected sites in the GCC ( UAE, Oman, Saudi Arabia) that bypass the Strait of Hormuz for that very reason, but dream on.

Do you really think American investors, even if they were not from the Modi-loving Gujarati American Indian community, have Pakistan even in their consideration set when they are considering setting up a refinery in Saudi Arabia , UAE or Oman.
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money does not have religion
 
Michael said:
You'd better pray that this is just a dream.
You'd better pray that this day will never come.

The world we live in is full of unspoken rules. Neither India nor Pakistan, with all their friends and enemies, will allow their energy independence.
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world is too complex to be broken to cliches
 
GatlingGunZ said:
You lack basic comprehension and arithmetic skills. You were blabbering about 80 years , I told you that for 65 years we were mismanaged , worse than you. Now we have a surplus capex to utilise as per priority, we have begun Coal to Syngas projects. we might move towards CTL if our Andaman Nicobar oil exploration fails.
You dolt definitely haven't checked that how many times did crude price even slump below 45$/B
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Sure dude, you are right and the Indian government, all the cash rich energy SOEs, Ambanis, Adanis, Tatas and all other foreign and domestic investors have been too stupid to have recognized the genius of your idea over the last many decades.
 
GatlingGunZ said:
You lack basic comprehension and arithmetic skills. You were blabbering about 80 years , I told you that for 65 years we were mismanaged , worse than you. Now we have a surplus capex to utilise as per priority, we have begun Coal to Syngas projects. we might move towards CTL if our Andaman Nicobar oil exploration fails.
You dolt definitely haven't checked that how many times did crude price even slump below 45$/B
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India oil production have declined from 800k barrels to 550k barrels yet its not bothering to invest in coal to oil which is ancient tech.
 
hydrabadi_arab said:
India oil production have declined from 800k barrels to 550k barrels yet its not bothering to invest in coal to oil which is ancient tech.
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Right now we are drilling in Indian Ocean near Andaman Nicobar SEZ. If that fails then we might see for CTL project.
 
Are new oil refineries still being built?

China has completely stopped approving new oil refineries. It is also upgrading the technological capabilities of existing refineries and phasing out outdated production capacity.

The era of renewable energy is rapidly approaching, driven by wind, solar, hydropower, and nuclear energy.
 
hydrabadi_arab said:
This upgradation will barely meet Pakistan current needs for MS petrol, will have to export surplus diesel which is easy compared to furnace oil.

decade late but better late then never.
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What you are missing is that most analysts expect global gasoline demand to peak in the 2020s and global diesel demand to peak in the 2030s. Who is going to absorb this excess supply when there is already overcapacity and demand is going to decline.
 
@Owaiz sb

Who is going to absorb this excess supply when there is already overcapacity and demand is going to decline.

Many of the older low complexity refineries, especially in the West are going to shut down. It will be a slow sunset but the efficient ones will still make some money.

Regards
 

Iranian oil smuggling drops 60pc, claim sources​

www.dawn.com

Iranian oil smuggling drops 60pc, claim sources

Influx slows after terrorists destroyed six tankers in 45 days.
www.dawn.com

With 60% drop in smuggling because of BLA attacks on tankers last month this happened.

"Pakistan's overall refinery upliftment surged 47.7% YoY to 1,143,000 tons in July '26, up from 774,000 tons a year earlier, driven by a broad-based rise in MS, HSD & FO offtake, according to the data compiled by AHL Research."

Even with current upgradation plan it will not be able to meet demand if we stop Iranian oil smuggling.
 

Pakistan’s five refineries agree to sign $6 billion upgrade deals early next month​

Ali Pervaiz Malik says upgrades will support long-term refinery sustainability and enable domestic production of Euro 5-compliant fuel.

ISLAMABAD: Pakistan’s five major oil refineries are ready to sign agreements under the Brownfield Refinery Upgradation Policy early next month, with the agreements expected to unlock approximately $6 billion in investment in the country’s refining sector.

Federal Minister for Petroleum Ali Pervaiz Malik held meetings with the managements of Pak Arab Refinery Limited, Pakistan Refinery Limited, National Refinery Limited, Cnergyico and Attock Refinery Limited to review progress towards implementation of the Brownfield Refinery Upgradation Policy, the financial and operational performance of the refineries, and measures to strengthen Pakistan’s energy security.

The managements of all five refineries reaffirmed their readiness to sign agreements under the Refinery Upgradation Policy, with the agreements expected to be signed early next month.

"The agreements are expected to unlock approximately $6 billion in investment in Pakistan’s refining sector," according to the information shared during the meetings.

The minister highlighted that refinery upgradation is essential for the long-term sustainability of the country’s refining sector. "Refinery upgradation is essential for the long-term sustainability of the country’s refining sector," Ali Pervaiz Malik said.

He said the planned upgrades would enable refineries to produce Euro 5-compliant fuel products in Pakistan.


"Producing these products domestically would help reduce reliance on imported petrol and diesel and could also help bring down their price compared to imported products," he said.

The minister stressed that timely signing of the agreements was imperative for taking forward the upgradation programme. "Timely signing of the agreements was imperative for taking forward the upgradation programme," he said.

He said the government would continue to facilitate the refineries in addressing any issues related to implementation of the policy.

During a separate meeting with PARCO management, the petroleum minister was briefed on the company’s financial and operational performance, along with its broader plans for strengthening Pakistan’s energy security.


He appreciated PARCO for managing its operations effectively during the Strait of Hormuz crisis.

"Pakistan successfully managed the crisis and ensured that the country’s petroleum supply system did not run dry," he said.

Malik emphasised that maintaining continuity of petroleum supplies and building resilient supply chains remained essential components of Pakistan’s energy security.

He was also briefed on ongoing developments concerning the proposed Oil City in Hub, envisaged as a strategic energy terminal and storage complex. The project is aimed at strengthening energy security, enhancing trade connectivity, supporting supply assurance and contributing to economic growth.

In a meeting at PRL, the Managing Director, Board of Directors and management briefed the federal minister on the company’s current financial and operational performance. The management also apprised the Minister of measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.

In meetings with Cnergyico, NRL and ARL, the petroleum minister sought the views of the respective Managing Directors on any impediments to implementation of the New Refinery Upgradation Policy.

The managing directors informed the minister that their respective companies had completed the required preparations and were now ready to sign the agreements, which would constitute the first step towards implementation of the policy.

The Managing Director of ARL highlighted the need to upgrade existing refineries to ensure their compliance with changing global dynamics and evolving fuel standards. He also appreciated the petroleum minister’s leadership, noting the pivotal role played by the Ministry in advancing major reforms in the petroleum sector.

Malik reiterated that modernising Pakistan’s refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience, reducing reliance on imported petrol and diesel, and advancing the country’s broader energy security objectives.

"Modernising Pakistan’s refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience, reducing reliance on imported petrol and diesel, and advancing the country’s broader energy security objectives," he said.

The petroleum minister said the government remained committed to working with the refining industry to ensure timely implementation of the New Refinery Upgradation Policy and to facilitate the investments required for the sector’s modernisation.

"The government remained committed to working with the refining industry to ensure timely implementation of the New Refinery Upgradation Policy and to facilitate the investments required for the sector’s modernisation," he said.

The planned agreements with the five major refineries are expected to mark a major step towards modernising Pakistan’s refining infrastructure, enabling domestic production of Euro 5-compliant fuel products, reducing reliance on imported petrol and diesel, and strengthening the country’s energy security.
 

Cnergyico signs refinery upgradation agreement with government​

Agreement with state-owned ISGS covers implementation of approved refinery upgradation project under policy amended in August 2026


Cnergyico Pk Limited, Pakistan's largest oil refinery by capacity, has signed an Upgradation Agreement with the Government of Pakistan for the modernisation of its existing refinery under the country's policy for upgrading brownfield refineries.

The listed company disclosed the development to the Pakistan Stock Exchange (PSX) on Thursday, saying the agreement had been signed with the government through state-owned Inter State Gas Systems (Private) Limited (ISGS).

The agreement follows approval by the Economic Coordination Committee (ECC) of the Cabinet under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, which was amended in August 2026.

Under the policy, ISGS has been nominated as the implementation entity on behalf of the Petroleum Division for executing the Upgradation Agreement.

“We are pleased to inform you that Cnergyico Pk Limited (the "Company") has today, i.e., 24th September 2026, signed the Upgradation Agreement with the Government of Pakistan through its stateowned enterprise, Inter State Gas Systems (Private) Limited ("ISGS"), pursuant to the approval of the Economic Coordination Committee (ECC) of the Cabinet under the ~akistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, as amended in August 2026 (the "Policy"),” read the Cnergyico’s disclosure submitted to the PSX.

The agreement provides for the upgradation of Cnergyico's existing refinery, including implementation of its approved refinery upgradation project in accordance with the terms and conditions stipulated under the policy.

Cnergyico said it "remains committed to upgrading and modernizing its refinery in line with the objectives of the Policy".

The refinery also expressed appreciation to the government for its "support and initiatives towards facilitating the modernization and upgradation of the country's refining sector".

The signing ceremony was held in Islamabad and attended by representatives of the federal government and participating refineries.

In its formal disclosure of price-sensitive information, Cnergyico reiterated that it had signed the agreement on September 24 and that the arrangement covers implementation of the approved refinery upgradation project under the amended policy.

Cnergyico did not specify the investment required for the project, the scope or capacity of the planned upgrades, a financing arrangement, or a timeline for completion.
 

Pakistan’s three major refiners sign upgrade agreements with government​

Cnergyico, National Refinery and Attock Refinery move ahead with modernisation under amended brownfield policy; ARL targets Euro-V standard fuels

Three major Pakistani refiners, Cnergyico Pk Limited, National Refinery Limited (NRL) and Attock Refinery Limited (ARL), have signed upgrade agreements with the government, marking progress towards modernising the country's existing refining infrastructure under the brownfield refinery policy.

The agreements have been executed with state-owned Inter State Gas Systems (Private) Limited (ISGS) under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, according to separate disclosures by the three listed companies.

The policy was amended in February 2024 and further amended in August 2026. ISGS has been designated by the Ministry of Energy's Petroleum Division as the government-side entity for execution of the upgrade agreements.


Cnergyico said it signed its Upgradation Agreement with the Government of Pakistan through ISGS on September 24 following approval by the Economic Coordination Committee (ECC) of the Cabinet.

Its agreement provides for the upgradation of the company's existing refinery, including implementation of its approved refinery upgradation project in accordance with the terms and conditions stipulated under the policy. ISGS has been nominated as the implementation entity on behalf of the Petroleum Division.

Cnergyico said it "remains committed to upgrading and modernising its refinery in line with the objectives of the Policy", while acknowledging government initiatives aimed at facilitating the modernisation of the country's refining sector.

The signing ceremony was held in Islamabad and attended by representatives of the government and participating refineries.


National Refinery also formally signed its Upgrade Agreement with ISGS under the same brownfield refinery policy. It described the signing as a "breakthrough in the company's efforts to modernise the existing refinery infrastructure".

The refinery said the upgrade would contribute towards a more sustainable and secure energy future and help strengthen supply-chain resilience for the country.

Attock Refinery similarly confirmed that it had successfully executed its Upgrade Agreement with ISGS under the policy, describing the development as part of its commitment towards sustainable development and upgradation.

ARL said execution of the agreement marked a significant milestone in its efforts to modernise and upgrade its existing refinery infrastructure.


The refinery further detailed on the intended outcome of the modernisation, saying that the upgrade would enhance its operational efficiency, improve product quality, produce Euro-V standard fuels and contribute towards a more sustainable and secure energy future for Pakistan.

The three agreements collectively move Cnergyico, National Refinery and Attock Refinery further into the implementation framework established by the government for upgrading existing brownfield refineries.

The disclosures, however, do not specify the investment amounts involved in the three projects, their financing arrangements, the refining capacity to be upgraded or added, or timelines for completion.
 
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