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August 17, 2026
Pakistan’s refinery modernisation programme is moving towards implementation, with five major refineries planning combined investments of around $4.5 billion to $5 billion in green fuel, capacity expansion and other upgrades. PARCO has committed $600 million to a green fuel project, while PRL, Cnergyico, ARL and NRL are also preparing major investments.
Pakistan’s long-delayed refinery modernisation programme is gaining momentum, with five domestic refineries planning combined investments of around $4.5 billion to $5 billion in cleaner fuels, capacity expansion and related infrastructure.
According to Profit Pakistan Today and Geo News, the government is finalising agreements with local refineries under the revised Brownfield Refineries Upgradation Policy. A senior Petroleum Division official said the agreements are expected to be signed at a high-level ceremony, while refineries have been given 45 days to sign their implementation agreements. The revised deadline is shorter than the previous 60-day period and is aimed at moving the industry from long-standing investment commitments towards actual implementation.
PARCO, Pakistan’s largest refinery, has committed around $600 million to a green fuel project after evaluating different upgrade options. The refinery has chosen the green fuel project instead of a standalone bottom-of-barrel project. Its furnace oil share has already fallen from around 20% to 14%, while the project is expected to bring it down to around 10-11% in its first phase. Under the policy, PARCO will also shift from Euro-III to Euro-V specifications.
The company is expected to increase motor gasoline production from around 3,678 tonnes per day to 4,023 tonnes per day, with diesel production also projected to rise.
Pakistan Refinery Limited is planning one of the largest investments, with a $1.8-$2 billion bottom-of-barrel project that is expected to eliminate furnace oil production. The project would also double PRL’s crude refining capacity from 50,000 barrels per day to 100,000 barrels per day. PRL’s broader modernisation efforts are intended to improve its product mix and increase the production of higher-value petroleum products. (LinkedIn)
Attock Refinery Limited is also preparing an upgrade estimated at around $600 million. The project includes a Continuous Catalytic Reformer, upgrades to diesel and kerosene processing units, additional tankage and utilities, as well as a biofuel facility.
According to the reports, the upgrade would allow ARL to meet Euro-V specifications and increase motor gasoline production by around 25%. (LinkedIn) Cnergyico Pakistan is preparing an investment programme of approximately $1.2 billion covering green fuel, bottom-of-barrel processing, capacity expansion and a new Single Point Mooring facility.
The company currently has refining capacity of around 156,000 barrels per day and plans to increase this to approximately 200,000 barrels per day. Cnergyico has said its operations include “Pakistan’s largest oil refining complex” and a Single Point Mooring facility that supports the country’s energy supply chain. (LinkedIn) National Refinery Limited is considering a hybrid green fuel and bottom-of-barrel project estimated at $300 million to $800 million. The company is also considering increasing crude refining capacity from 50,000 barrels per day to 70,000 barrels per day. The combined plans of PARCO, PRL, Cnergyico, ARL and NRL could represent a major transformation of Pakistan’s refining sector.
The investments are expected to improve fuel quality, reduce furnace oil production, increase domestic refining capacity and strengthen Pakistan’s energy security. The government’s tighter implementation deadline now puts greater pressure on refineries to turn their proposed investments into signed agreements and eventually completed projects.
