Karachi: Pakistan Refinery Limited (PRL) has reported a record-breaking production of over 800,000 metric tons of High-Speed Diesel (HSD) this year, marking the highest output in the company's history. The announcement was made in the company's recent annual report, highlighting its ongoing plans for expansion and strategic project execution.

According to JS Global, PRL has issued a conditional Letter of Intent to an EPC Contractor for the Refinery Expansion and Upgradation Project, following the completion of Front-End Engineering Design and bid evaluations. This project aims to transform PRL into a competitive deep-conversion refinery within 36 months of the Notice to Proceed. The company is also exploring alternative execution models, including a hybrid Owner's Engineer/Project Management Consultant approach and Build-Own-Operate structures.

In response to evolving financial conditions, PRL is working towards achieving financial closure by engaging with multilateral institutions, Export Credit Agencies, and potential investors. The company is also considering a phased implementation strategy to manage substantial capital requirements. Despite challenges, PRL has successfully exported 386,838 metric tons of HSFO, accounting for 98.3% of its total HSFO sales, due to reduced local demand.

The report also detailed financial activities, including an increase in customs duty paid on imported crude oil, rising to Rs19.6bn, and a significant escrow account balance. These financial maneuvers align with the Pakistan Oil Refining Policy for Existing/Brownfield Refineries, 2023. The Government of Pakistan is in the process of finalizing a revised policy, which will affect the recognition of incremental incentives following the project's Final Investment Decision.