The projects of Diesel de-sulphurization (DHDS) and Isomerization (ISOM) to produce environment friendly products and to meet Country’s growing demand are proceeding smoothly. The company estimates that the project will be completed on time and within the project value of USD 349 million.
Engineering and procurement activities have been completed and the projects are progressing smoothly. Although, the mechanical completion has been delayed by six weeks, your Company is making all efforts to complete the projects before June 30, 2017.
As most of the project is financed by Company's own resources, the syndicate arrangement with consortium of banks for financing of these projects amounting to Rs. 24.2 billion has been reduced to Rs.12.1 billion.
The completion of HSD de-sulphurization would yield the price of Euro-II product, while increase of 1.5% deemed duty on HSD is under discussion with Ministry of Petroleum & Natural Resources that would result in improved margins. Prevailing higher price of Motor gasoline compared with the export price of Naphtha would also result in improved profitability. On completion of Isomerization project the production of Motor Gasoline would increase by conversion of most of Naphtha currently exported at lower price.
In addition to the up-gradation projects planned as above, following projects are also being undertaken:
CDU Revamp Project
The project has been envisioned, to enhance the installed crude oil processing capacity from 50,000 Barrel per stream day (bpsd) to 53,000 bpsd at crude distillation unit of fuel refinery. The Project has been awarded to the contractor. Basic engineering work has been completed. The project is expected to be commissioned by mid of calendar year 2017.
Up-gradation of existing Turbo Generator
Steam Turbine at power generation is being replaced by a multi-extraction back pressure turbine. This will reduce the overall per unit cost of electricity produced. The project has been awarded to Siemens and is expected to be completed by end of 2016-17