Staff Report
ISLAMABAD:
Pak-Arab Refinery (PARCO) has earned huge profit of Rs 122 billion during last 20 years and its major shareholders –Pakistan & Abu Dhabi- also received heavy gains worth billion of rupees during the said period of time.
While showing outstanding performance, PARCO has earned Rs 122 billion during last 20 years and the federal government being one of the major shareholders of the PARCO received Rs 73 billion and Abu Dhabi also being major shareholder obtained Rs 49 billion to Abu Dhabi government as dividend out of the total profit.
As per details, PARCO is also known as Mid-Country Refinery (MCR) which is a joint venture of Government of Pakistan with 60% shares and Government of UAE with 40%, has virtually become the lifeline of the country as it is one of the largest energy conglomerate comprising cross country pipeline network originating from Karachi and reaching Machhike near Lahore – covering over 2000 kilometres, and an extensive retail network through its associates.
Built at cost of $ 886 million and commissioned in 2000, Pakistan’s most modern refinery having initial refining capacity of 100,000 barrels per day, has not only increased its refining capacity up to 120,000 BPD crude oil in October 2020 but also improved the fuels product quality up to Euro-III grade.
In addition to this, PARCO, including through its subsidiary PAPCO, had also laid a cross country pipeline which includes the 870-km Karachi-Mahmoodkot (KMK) Pipeline, commissioned in 1981 (pumping up to 6 million tons per year of raw crude oil to refinery), 800km White Oil Pipeline from Karachi to Mahmoodkot (commission in 2005 at a cost of US$ 480 million) to transport refined products like diesel and kerosene (capacity 12milion tons per year) and 362-km Mahmoodkot- Faisalabad–Machhike (MFM) Pipeline, in 1997 to Faisalabad and Machhike near Lahore (capacity 3.5 million tons per year). WOP and MFM is currently undergoing upgradation for transporting petrol (Mogas) in addition to diesel which will soon be inaugurated Prime Minister Imran Khan.
Beside above pipeline, a 22-km Korangi-Port Qasim Link (KPLP) Pipeline was laid by PAPCO, linking PARCO’s Korangi station with PAPCO’s Port Qasim station, was commissioned in 2006. This tactical link has connected both the Karachi ports (Keamari & Port Qasim) with PARCO & PAPCO pipeline systems, providing flexibility in pipeline operations to receive products from either port.
PARCO Refinery has been operating for two decades and has invested more than US$ 600 Million in last ten years only. This includes $170 million for increasing refinery capacity by 20% along with installing two new units (Isomerization and Hydrogen purification), $ 135 Million for installing Diesel Hydro desulphurization Plant in 2010, $ 35 Million for Asphalt Air Blowing Unit in 2011 and $200 million for upgrading White Oil pipeline to multiproduct pipeline from Karachi to Machhike and substantial investment for acquiring the business empire of Chevron in the country.
PARCO refines the 80 percent crude oil that PARCO gets from abroad (Saudi Arabia and UAE) and 20 percent local crude.
PARCO mainly reinvested its monetary gains on various ventures with an aim to diversify its business outlook. It was the first refinery to produce Euro II fuel (now Euro III). The deemed duty that was given in the past was also used for the upgradation of POL products in terms of specifications. Now all refineries in Pakistan will invest about 4.5 billion dollars to bring its products (Mogas and Diesel) up to Euro-V specifications and PARCO will invest about $1-1.2 billion in the future years to achieve the targets. So much so PARCO has planned to turn furnace oil into Mogas and other finished products.
PARCO refinery played a pivotal role and provided the JP-8 for war Jets to keep the enemy at bay apart from ensuring the fuel to the Armed Forces for their movements to thwart the India attacks.
