First Lube Refinery
The construction work of first Lube Refinery was started in May 1964. The Refinery came into production in June 1966,
with crude oil refining capacity of 539,700 tons per annum and production of 76,000 tons of various grades of Lube Base Oils
and 100,000 tons of Asphalt per annum. This Refinery also supplemented fuel products requirement of the country particularly
Kerosene and Diesel.
On January 16, 1972, the Government of Pakistan took over the management of the Refinery under the Economic Reforms Order.
The overall managerial directions were entrusted to the Ministry of Production.
The growth in demand of fuel products in the subsequent years,
after installation of first Lube Refinery, impelled the need for further increase in refining capacity.
In the year 1974, National Refinery Limited signed an agreement with Industrial Export and Import of
Romania to construct a Fuel Refinery having crude refining capacity of 1.5 million tons per year on turnkey basis.
Since the Fuel Refinery was to be integrated with the first Lube Refinery, a site on the same premises was selected.
NRL's Fuel Refinery was a fresh addition on the country's growing industrial landscape.
The Fuel Refinery was commissioned in 1977 for producing LPG, Motor Gasoline, HOBC, Naphtha, Kerosene,
Jet Fuels (JP-l), (JP-4), High Speed Diesel Oil (HSD), Furnace Oil.
In order to meet country's demand of petrochemicals/solvents Benzene,
Toluene and Xylene, particularly Toluene, to meet Defense requirements,
installation of a BTX plant was seen feasible. Feedstock to BTX plant was also available from the Fuel Refinery.
A Petrochemical BTX plant was therefore installed in 1979, which was capable of producing 25,000 Metric tons per Annum of Benzene,
Toluene and Xylene.
The country's first petrochemicals unit was integrated with the units of the Fuel Refinery. Currently it is out of operation.
Propane Recovery Unit (PRU)
In order to meet high purity Propane requirement for extraction and refrigeration
at various units of Lube Refinery, a Propane Recovery Unit was installed and commissioned in 1980.
Detailed engineering and fabrication for the entire plant was done locally.
The plant is designed to produce 1,200 tons per annum of high purity Propane,
which meets the requirement of both Lube Refineries.
Second Lube Refinery
In early 1980's the industrial growth in Pakistan changed the petroleum products supply demand scenario.
Fuel business was saturating whereas there was a captive market of lube oils in the region.
In view of this, NRL installed its second Lube Refinery, which was commissioned in 1985 for producing 100,000 tons of Lube Base Oils.
The feedstock for this Lube Refinery was available as surplus Furnace Oil from Fuel Refinery, which was upgraded to Lubes.
Basic engineering and design work for this project was carried out by CE Lummus of U.K under
consultation with Taxaco Development Corporation of USA As a result of concerted efforts,
a refinery representing the latest technology appeared in the highly impressive NRL Complex.
The completion of second Lube Refinery created the largest and the most comprehensive crude oil
refining complex in the country.
Fuel Refinery Revamp
Demand of fuel products in the country had positive growth rates in the late eighties.
However, the cost effectiveness of the projects gained prior importance.
Thus, in order to keep-up the pace with modern refineries and to reduce the processing cost per barrel of crude,
NRL implemented its Fuel Refinery Revamp Project in 1990. The revamp project was based on Energy Conservation,
enabling the capacity increase by 15,000 BPSD without increasing energy consumption. After the revamp,
the total crude processing capacity of NRL was enhanced to about 2.71 million tons per year.
The balancing and modernization of platforming unit was undertaken in 1995 and installation of larger sized reactors in 1997.
Increased production of High Octane reformat by 70%, gave potential for production of high quality, unleaded motor gasoline.
The corporate control of National Refinery was transferred to the Ministry of Petroleum & Natural Resources.
Self Power Generation
Based on the principle of cogeneration from high-pressure steam boiler,
a 7.5 MW power generation unit has been installed to decrease dependence on purchased power supply.
With the commissioning in year 2000, beside energy conservation and supplying low cost electricity,
the Self Power Generation is helping in reducing production losses due to interruption in power supply.
Lube II Refinery Dewaxing Unit Revamp Project
In order to meet the growing demand of LBO, a Lube Revamp Project was undertaken with the Technical Assistance
of Exxon Mobil in year 2005. On completion of the Project, the production capacity of the second Lube Refinery
was enhanced by 14,800 TPA. Dilchill Crystallization Process Technology was utilized for production of High
Viscosity Bright Stock (BS HVI) grade of Lube Oil.
Addition of Storage Tanks
In order to meet the rapidly changing market demands and to increase the operational flexibility,
the storage capacities of crude oil and various products i.e Furnace Oil, Lube Base Oil, HSD, Asphalt and JP-1 were enhanced
by addition of nine storage tanks.
New Water Reservoir
To cater for acute shortage of water during summer season,
a new water reservoir having capacity of three million gallons has been added.
Product Metering System
Company has implemented Product Metering System at refinery and Keamari Terminal for custody transfer of product to Oil Marketing Companies (OMCs). Initially project is handling HSD pumping to OMCs.
Radar Gauging System
Radar Gauging System for accurate measurement of tanks for custody transfer has been installed on 105 tanks.
The company has a strong information technology capability. Computerized instrumentation and auto-tank gauging are being applied. The technical staff uses a variety of computer software for process design, performance monitoring, simulation and engineering design.
NRL had implemented an Enterprise Resource Planning (ERP) solution, SAP(version 4.6C) in the year 2004 with following modules:
- · Finance and Controlling (FICO)
- · Material Management (MM)
- · Sales & Distribution (SD)
- · Plant Maintenance (PM)
- · Human Resource (HR)
During 2015-16, the Company has successfully up-graded its ERP system to ECC6, the last available SAP version, for improved Management and Financial Reporting, with some added features and following additional modules:
Nitrogen Gas Generator
- · Projects Systems (PS)
- · Audit Information Systems (AIS)
- · Quality Assurance (QA)
For the purpose of financial economization, Nitrogen Gas Generator having capacity of 400 Normal Cubic Meter/Hour has been installed. Nitrogen Gas will be used as inert media for MEK Units. The Project was successfully commissioned in November 2015.
Reverse Osmosis Plant
250,000 gallon per day of Reverse Osmosis Plant has been installed and Commissioned in May 2014. Considering the scarcity of water and its requirement for refinery operations, Company has installed Reverse Osmosis plant IV having capacity of 250,000 gallons per day. The Plant has been commissioned in June 2016.
Effluent Treatment Plant
The Effluent Treatment Plant is used to clear water from contaminants. The recovered oil is re-used and water is diverted as feed stock for RO plants. The plant has been installed and commissioned in June 2016.
COMPLETED PROJECTS – 2016-17
The company successfully completed the following projects during the year 2016-17.
In line with the direction of Ministry of Petroleum and Natural Resources to achieve Euro-II standard HSD (less than 500 ppm) NRL successfully implemented the project of Diesel desulphurization (DHDS). The plant has a capacity to reduce sulphur to as low as 10 ppm which may help NRL to meet future requirements. The project was successfully commissioned in June 2017. The project cost of DHDS incurred by the company is Rs.26 billion, without any major increase in revenues as the incentive initially announced by the Government for increasing the deemed duty from 7.5% to 9% has been delayed. The company is in discussion with GoP to allow refineries increase in deemed duty so that the huge investment cost and processing cost could be recovered.
CDU Revamp Project
Installation and Commissioning of used Diesel Generator of 8.2 MW
The implementation of the project has enhanced the installed crude oil processing capacity from 62,000 bpsd to 65,000 bpsd at crude distillation unit of fuel refinery.
The energy demand of the company increased due to upgradation projects. In order to meet the power requirement the company procured used Diesel Generator of 8.2 MW capacity, which was successfully installed. The generator is meeting the company’s electricity requirements.
COMPLETED PROJECTS – 2017-18
Isomerization project started two years ago has been successfully commissioned in October’ 2017. Through Isomerization company would succeed in converting majority of its Naphtha, which has no local market, to Motor Gasoline which would meet the Country’s requirements as well as result in fetching higher price. Total isomerate production capacity of NRL is 6,793 BPSD.
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 internally generated electricity. The project was awarded to M/s Siemens Engineering Pakistan and has been successfully completed in September 2017.