Skip to main content

PRL enroute to become the first refinery in Pakistan to produce Very Low Sulphur Furnace Oil

Pakistan Refinery Limited, in light of its new operational strategy, has undertaken certain non-CAPEX options, implementations of which is expected to have a positive impact on the Company.

As a part of the new operational strategy the Company has considered new crude oil recipes which are expected to positively change the product slate and also make Refinery compliant with regulatory requirements. This change of crude oil recipe, coupled with other initiatives already undertaken, is expected to contribute as follows:

The Company is now producing Motor Gasoline (Petrol) of 92 RON thus saving the RON differential penalty. The Company is also producing MS 95/97 RON generating additional revenue.
By the end of the current financial year, the Company is expected to produce EURO II standard High-Speed Diesel (HSD) thus becoming compliant with regulatory requirements and saving price differential and penalty, currently being paid on the non-compliant HSD. Price differential and the penalty paid in 2018-19 amounted to Rs. 1.15 billion.
Similarly, by the end of the current financial year, the company is expected to become the first Refinery in Pakistan to produce Very Low Sulphur or IMO-2020 standard Furnace Oil which being a premium product fetches a much higher price than High Sulphur Furnace Oil currently produced.
These initiatives will improve future refinery-margins and help the Company in achieving regulatory compliance. The above initiatives are in addition to the Refinery Upgrade Project and the short to medium term CAPEX projects announced earlier.
Labels:

Comments

Post a Comment

Popular posts from this blog

State Bank of Pakistan issued new instructions over the Interest Rates and Deposit Rates

Post a Comment
Read more

SECP Links Short Selling With Uptick Rule in Futures Market

In the wake of COVID-19 and its unprecedented effect on global stock markets, the Securities and Exchange Commission of Pakistan  in consultation with market stakeholders and market infrastructure institutions, has decided that for the April 2020 contract, a short sale in 36 specific shares of the futures market shall be subject to an uptick rule. This will ensure the provision of a required prior notice period to the market and retain liquidity in the rollover week. The uptick rule means that the shares of that relevant scrip have to be sold at a price higher than the last trade not lower. Further, to support the mutual fund industry, the maximum period of borrowing by mutual funds for redemption purposes will be extended from existing 90 days to 360 days. Moreover, the commission has allowed relaxing deposit requirements against the base minimum capital of TREC holders. The requirement to perform biometric verification at the time of opening of the account is eased and ...
Post a Comment
Read more