U.S. companies will learn about export opportunities related to planned oil refinery modernization programs in Pakistan. The modernization programs are designed to increase the supply of value-added products, improve efficiency and meet new environmentally-friendly regulations for cleaner fuels. The visit will introduce the foreign delegates to U.S. companies with appropriate technologies and services for planned and future refinery upgrades.

Background

While Pakistan holds sizeable natural gas reserves, the country remains highly dependent on oil imports. Pakistan currently consumes 16 million tons of petroleum products, of which approximately 82% is imported. As demand growth outpaces increases in production, Pakistan's net oil imports are projected to rise substantially in the coming years. Furthermore, early half of Pakistani imports are refined products.

Pakistan's oil refineries are planning substantial refinery upgrades in order to increase the supply of value-added products, improve efficiency, and meet new environmentally-friendly regulations for cleaner fuels. Specifically, the Government of Pakistan has mandated that all refineries reduce sulfur levels in their diesel and gasoline production by the end of 2008 in order to comply with the European Union's Euro V emission requirements and to improve environmental standards. Estimated costs are approximately US $1.5 billion.

Pakistan currently has five major operating refineries with a combined refining capacity of approximately 270,000 barrels per day (bblld). USTDA recently sponsored two feasibility studies in Pakistan for refinery modernization, including one for Attock Refinery Limited (ARL) and one for Pakistan Refinery Limited (PRL). PRL's board of directors recently approved an investment of $182 million to upgrade its 50,000 bblld refinery at Korangi near the southern port town of Karachi in order to produce cleaner fuel and improve processing margins. PRL is now preparing to issue tenders for the FEED, and the new units are expected to be commissioned within 36 months.

Pakistan's Pak-Arab Refinery (PARCO), a joint venture between Pakistan and Abu Dhabi, was established in 2000 to relieve Pakistan's dependence on refined petroleum imports. As Pakistan's largest oil refinery, it has a capacity of 100,000 bbl/d of throughput. The other refineries include National Refinery Limited, as well as a small 30,000 bbl/d refinery operated by Bosicor Pakistan Limited.