KARACHI: Attock Refinery Limited (ATRL) plans to establish a new 50,000-barrels-per-day (bpd) deep-conversion refinery alongside its ongoing brownfield upgradation project, subject to securing sustainable supplies of locally produced crude oil from northern fields and receiving the required government support.
According to ATRL’s annual report, the proposed deep-conversion refinery is part of the company’s longer-term strategy to strengthen its refining capacity and competitiveness.
Meanwhile, ATRL’s Refinery Upgradation Project, enabled by amendments to the Refining Policy for Brownfield Refineries, involves an estimated investment of $600 million. The project is aimed at improving product yields and quality while enhancing the refinery’s long-term competitiveness.
The project includes installation of a continuous catalyst regeneration (CCR) reformer and a kerosene hydrotreater, along with the revamp of the existing diesel hydrodesulphurisation (DHDS) unit and expansion and upgrading of utilities and other associated facilities.
The CCR unit is expected to increase premium motor gasoline (PMG) production by 25pc, raise the gasoline pool octane to Euro-V specifications and reduce the refinery’s dependence on octane-boosting additives and naphtha exports.
The DHDS revamp, meanwhile, is expected to reduce the sulphur content of high-speed diesel (HSD) from 350 parts per million (ppm) to 10ppm, enabling production of Euro-V-compliant diesel.
ATRL has completed the licensor front-end engineering design (FEED) studies for the CCR and DHDS revamp, while around 90pc of the overall project FEED package has been completed.
The company has also awarded the contract for FEED and project management consultancy (PMC) services to Italy-based Studi Technologie Progetti SpA (STP).
In parallel, expressions of interest (EOIs) have been issued to potential engineering, procurement, construction and commissioning (EPCC) contractors, with several international companies responding positively. Cost estimation, tender preparation and other project deliverables are progressing concurrently.
ATRL has recorded Rs3.1 billion under the Payable to Refinery Upgradation Account, representing the net-of-tax charge arising from the revision in the HSD deemed-duty surrender rate from 2.5pc to 5pc under amendments to the Brownfield Refineries Policy.
The refinery also recorded an inventory adjustment of Rs6.5bn to write down closing inventories to their net realisable value (NRV), mainly due to lower selling prices for certain petroleum products.
In addition, ATRL incurred Rs1.3bn in penalties related to the RON 91 and RON 92 price differential, along with a further Rs1bn charge, compared with Rs1.1bn in FY25, related to the HSD Euro-III and Euro-V price differential.
During the year, ATRL exported 172,500 tonnes of low-sulphur furnace oil (LSFO), helping manage weak domestic demand for furnace oil and providing an outlet for surplus production.
The refinery operated at 71pc of its capacity during FY26, compared with 69pc in FY25. In the final quarter of the year, ATRL also began receiving crude oil from a newly discovered oil reserve, potentially supporting its future feedstock availability.
