Refineries directed to uphold fuel standards

SOURCEThe Express Tribune
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ISLAMABAD: The Petroleum Division has directed oil refineries to maintain prescribed standards of petroleum products and ensure the production of fuel that meets requirements of latest model vehicles being assembled and imported into the country.

“A few years ago, an auto manufacturing company had complained about the low quality of fuel causing damage to engines of latest vehicles,” a senior official privy to petroleum-sector developments told APP.

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Accordingly, he said, the government was making efforts to help upgrade the existing oil refineries and establish new deep-conversion facilities for meeting the country’s fuel requirements in a smooth manner.

The official said an unprecedented incentive package was in place for setting up new deep-conservation oil refineries, enabling them to import machinery, vehicles, plants and equipment, and other material.

Elaborating the government’s efforts to achieve self-sufficiency in the oil refining sector, the official said Byco Oil Pakistan had established an oil refinery at Hub having capacity of processing 120,000 barrels per day (five million tons per annum) at a cost of $400 million.

Byco has also installed a single point mooring (SPM) facility for the transportation of imported crude oil and petroleum products from ships to storage tanks. The capacity of the facility is 12 million tons per annum.

Similarly, Attock Refinery Limited (ARL) has started producing Euro-II (0.05% sulphur) high-speed diesel, besides installing an isomerisation plant and enhancing production of motor gasoline.

Upgrade of refineries unlikely in short run

Pakistan Refinery Limited (PRL), on the other hand, installed the isomerisation plant in 2016 and later doubled its production of motor gasoline. Pak Arab Refinery Limited (Parco) is implementing its coastal refinery project at Khalifa Point, near Hub, which is a state-of-the-art refinery having capacity of 250,000 barrels per day (over 11 million tons per annum) with estimated cost of over $5 billion.

Responding to a question, the official said the Oil and Gas Regulatory Authority, being the watchdog, pursued an effective policy for the sampling and testing of petroleum products for onward distribution across the country.

Under the policy, the petroleum products, conforming to the approved specifications notified by the Petroleum Division, were allowed to be used in the country.  

Published in The Express Tribune, July 10th, 2019.

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