ISLAMABAD: Attock Refinery Limited (ATRL) is considering setting up a new 50,000 barrels-per-day (BPD) deep-conversion refinery alongside its planned $600 million brownfield upgradation project, according to key takeaways from the company’s annual report compiled by Topline Pakistan Research.
The proposed new refinery would be subject to sustainable enhanced supplies of locally produced crude oil from the North as well as necessary government support.
Separately, ATRL said it was progressing with its Refinery Upgradation Project under the amended Refining Policy for Brownfield Refineries. The project, involving an estimated investment of around $600 million, is aimed at improving the refinery’s product yield, fuel quality and long-term competitiveness.
The project envisages installation of a Continuous Catalyst Regeneration (CCR) Reformer and Kerosene Hydrotreater, alongside the revamp of the existing Diesel Hydro Desulphurization (DHDS) Unit and expansion and upgradation of utilities and associated facilities.
The CCR unit is expected to increase Premium Motor Gasoline (PMG) production by 25% and improve the gasoline pool’s octane level to Euro-V specifications. It is also expected to reduce the refinery’s reliance on octane-boosting additives and naphtha exports.
The DHDS revamp, meanwhile, is expected to reduce sulphur content in high-speed diesel (HSD) from 350 parts per million (ppm) to 10 ppm, enabling ATRL to produce Euro-V compliant diesel.
Preparatory work on the project has also progressed, with ATRL completing licensor Front-End Engineering Design (FEED) studies for the CCR and DHDS revamp and completing 90% of the overall project FEED package.
The contract for project FEED and Project Management Consultancy services has been awarded to Italy’s Studi Technologie Progetti SpA. Expressions of Interest have also been issued to potential Engineering, Procurement, Construction and Commissioning contractors, with positive responses received from several international companies.
The refinery said that cost estimation, tender preparation and other project deliverables are progressing concurrently.
On the financial side, ATRL recorded Rs3.1 billion under “Payable to Refinery Upgradation Account”, representing the net-of-tax charge arising from an increase in the HSD deemed-duty surrender rate from 2.5% to 5% following amendments to the brownfield refineries policy.
The company also recorded a Rs6.5 billion inventory adjustment to write down closing inventories to their Net Realisable Value, primarily due to declining selling prices of certain petroleum products.
ATRL booked penalties of Rs1.3 billion during FY26, compared with Rs1.5 billion in FY25, relating to the RON 91 and RON 92 price differential. A further Rs1 billion charge was recorded against the HSD Euro-III and Euro-V price differential, compared with Rs1.1 billion a year earlier.
The refinery exported 172,500 tonnes of Low Sulphur Furnace Oil during the year, helping manage weak domestic furnace oil demand and providing an outlet for surplus production.
ATRL operated at 71% capacity during FY26, up from 69% in FY25. During the final quarter, the refinery also began receiving crude oil from a newly discovered oil reserve, with sustained availability of the local crude expected to support higher refinery utilisation going forward.
