Pakistan Refinery (PRL) has awarded a front end engineering design (FEED) contract, worth $1.2bn, to Wood Group UK for its refinery expansion and upgrade project (REUP).

The REUP aims to double Pakistan Refinery’s crude processing capacity from 50,000 barrels per day, to 100,000 barrels per day.

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Wood plans to start the FEED work at the refinery in the current financial year, with completion planned by August 2023.

Pakistan Refinery will finalise the project cost and then move ahead with awarding the engineering, procurement, and construction (EPC) contract.

As part of the upgrade project, the hydro skimming refinery is planned to be made into a deep conversion refinery to enable the production of High Speed Diesel (HSD) and motor spirit fuels that are EURO V compliant and environment-friendly.

The conversion would significantly reduce the refinery’s production of high sulphur furnace oil.

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Located on the coastal belt of Karachi, the refinery currently processes crude oil into a range of distilled petroleum products including kerosene oil, HSD, furnace oil, jet fuel, motor gasoline, and naptha, among others.

The refinery operates at two locations including the main processing facility situated at Korangi Creek, and the related crude berthing and storage facility located at Keamari.

Profit by Pakistan Today cited sources in the oil refining sector as saying that the REUP is expected to have a duration of five years while the FEED will have an 18-month period.