KARACHI: National Refinery Limited (NRL), a second largest oil refinery in Pakistan, has finished a record upgrading expostulate directed during producing a best-quality diesel, according to a bourse filing on Wednesday.
“The plant has a intensity to revoke sulphur calm to as low as 10ppm (parts per million),” NRL Company Secretary Nouman Ahmed Usmani pronounced in a presentation to a Pakistan Stock Exchange (PSX).
Sulphur calm in diesel causes wickedness in a environment.
Pakistan has started importing 500ppm diesel in Jan 2017 as it heavily relies on fuel reserve from abroad markets. Earlier, it was importing old-fashioned diesel containing 5,000ppm, that was dangerous and frequency used around a world.
Earlier, a supervision had asked refineries to ascent their record in sequence to furnish a Euro-II customary diesel carrying 500ppm.
The 10ppm sulphur calm means a refinery has consecrated a record to furnish diesel with ultra-low sulphur content, that can be called “best of a best quality” diesel.
No nation around a universe produces and consumes this form of diesel. The lowest sulphur calm in diesel being used around a creation is 50ppm, that is being consumed by about dual dozen countries.
NRL’s batch cost rose 1.88%, or Rs13.46, to Rs729.76 with a volume of 169,250 shares during a PSX.
The refinery, however, will not furnish a 10ppm diesel for a time being. It has started prolongation of Euro-II customary diesel in line with supervision guidelines.
“NRL’s diesel hydro desulphurisation (DHDS) and auxiliary units have successfully commenced operations. Completion of DHDS has enabled a refinery to approve with supervision directives and furnish high-speed diesel (HSD) assembly a low sulphur (500ppm) Euro-II specifications,” Usmani combined in a notification.
Other technological upgrading will capacitate a refinery to furnish additional apportion of petrol (motor gasoline) from naphtha from subsequent month.
“Naphtha isomerisation (ISOM) section is in start-up proviso where a auxiliary units (naphtha splitter and naphtha hydrotreater) have already been consecrated and a refinery will furnish additional engine gasoline by mid-July 2017,” a association secretary said.
The plan would assistance a association boost prolongation of petrol by 192,000 tons per year, it was learnt.
This will somewhat cut Pakistan’s petrol imports. The nation mostly exports naphtha – a locally constructed tender element for petrol – due to small accessibility of compulsory technology. The refinery has prolongation ability of 2.71 million tons per year, including mixed grades of lube bottom oil.
It had set a cost of technological upgrading and enlargement of petroleum projects during $349 million.
The cash-rich organisation saved incomparable partial of a upgrading and enlargement projects from a possess using finances. However, it acquired a debt of Rs12.1 billion in a figure of syndicated tenure financial for 10 years with two-year beauty period.
The supervision had tasked internal refineries to furnish Euro-II customary products by Dec 2012. Later, a Economic Coordination Committee extended a deadline to Dec 2015, that was also not achieved.
The refinery has reported a net distinction of Rs83.46 billion in 9 months finished Mar 31, 2017 with gain per share (EPS) of Rs83.46. The distinction is 27% aloft than a gain done in a analogous duration of prior year.
Published in The Express Tribune, Jun 22nd, 2017.