Cnergyico plans to invest $1bn in Pakistan’s oil refining sector

Cnergyico Pk Limited, Pakistan’s premier refiner, is set to invest over $1 billion following a new government policy designed to boost the sector. 

This investment will enable Cnergyico to increase its production of Euro-V compliant gasoline and diesel while reducing its production of furnace oil due to its fluctuating demand. 

Moreover, Pakistan Refinery Limited (PRL) plans to double its processing capacity to 100,000 barrels per day with a $1.7 billion investment, with completion targeted by the end of 2028. 

Collectively, Pakistan’s five refineries are looking to invest between $5 billion and $6 billion in upgrades, which could potentially double the country’s petrol production, increase diesel output by 47%, and reduce furnace oil production by 78%. 

These developments could lead to self-sufficiency in diesel production, reducing the need for costly imports.

Pakistan has been grappling with economic hurdles such as political unrest, rising inflation, a faltering currency, and dwindling foreign reserves, which have dampened investor confidence and deterred investment in significant projects. 

To reverse this trend, the government introduced the Brownfield Oil Refinery Policy, aimed at encouraging investment in existing projects, complementing the earlier Greenfield Refinery Policy which aimed to attract foreign investment. 

Although foreign investors have remained cautious about initiating new projects, the Brownfield policy has sparked interest among Pakistan’s top five refiners, including Cnergyico, which is planning a major investment to modernize and expand its refining capabilities. 

The company’s refining complex, with a capacity to process up to 156,000 barrels of crude oil daily, accounts for 37% of the nation’s total refining capacity.