Pakistan Refinery has signed a front-end engineering design contract with Wood Group UK for its US$1.2 billion refinery expansion and upgrade project in Pakistan. The project aims to double the refining capacity of Pakistani refineries, according to the company's filing on the Pakistan Stock Exchange. It will increase the existing crude oil processing capacity of 50,000 barrels per day to 100,000 barrels per day. The hydro-skimming refinery, which is planned to be converted into a deep conversion refinery, is located on the coast of Karachi.

Currently, it processes crude oil into a range of distilled petroleum products such as furnace oil, kerosene, high-speed diesel, motor gasoline, jet fuel, naphtha, and more. The refinery operates at two locations, with the main processing facility at Korangi Creek. The associated crude oil berthing and storage facility is located at Keamari.

The Pakistan Refinery said it had hired a consortium of financial institutions as its financial advisor on its local financing needs for refinery expansion and upgrading projects. The company expects FEED work to begin in 2022 and is scheduled to be completed by August 2023. Thereafter, Pakistani refineries will take steps to reach financial settlement and award engineering procurement and construction contracts.Keywords: engineering construction, engineering news

By upgrading the Karachi crude oil refinery, the company will produce Euro V compliant, environmentally friendly high-speed diesel and motor gasoline fuels. Following the expansion and upgrade project, the refinery will also be able to convert fuel oil to produce value-added products. In addition, the company aims to significantly reduce the production of high-sulfur furnace oil after the project is completed.Editor/XingWentao