NRL Expects Refinery Policy Approval Soon

National Refinery Limited (NRL) expects the long awaited refinery policy to be approved soon, with management saying most outstanding issues have been resolved, paving the way for its planned brownfield refinery upgrade.

 

Speaking at the Pakistan Investor Connect Conference, NRL Chief Executive Officer Asad Hasan said the upgrade project, estimated to cost between $400 million and $1.2 billion, is expected to take five to six years after the policy is finalised. A feasibility study is currently underway by UK-based consultant Wood to determine the project's final scope.

 

The proposed expansion aims to enable the production of Euro-V compliant fuels while significantly reducing furnace oil output to align with changing domestic demand and environmental standards. Management said up to 27.5% of the project cost could be financed through the Ogra escrow account, with the remaining funding arranged through internal cash generation and borrowings.

 

NRL also highlighted changes in its product mix, with high speed diesel and motor spirit production increasing in recent years, while lubricant base oil output has declined. The company added that lower diesel smuggling has improved market conditions, allowing it to sell its full diesel production.

 

Management further noted that higher crude oil prices during the Iran-US conflict increased working capital requirements, with credit line utilisation rising sharply as crude, freight, and insurance costs climbed.