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PERAC and hydrocarbon industry.

In line with the wishes of the government to upgrade the quality of common man's life, the State Petroleum Refining & Petrochemical Corporation(Pvt) Limited (PERAC), has taken up the challenge and is actively engaged in implementation of a properly chalked out programme of upgrading and expansion of its facilities.

PERAC is a public sector corporation whose primary function is developing and operating oil refineries, petrochemical plants, promoting self-sufficiency in design and fabrication of equipment for Hydrocarbon processing industry and man-power development. The Corporation, with the support and guidance of the Ministry of Production, has over the last about one and half years taken up some schemes which are expected to contribute significantly towards the well being of the masses

National Refinery Limited

The original crude oil processing capacity of NRL was 50,000 bpd. After the completion of an expansion scheme the NLR has raised its crude processing capacity from 50,000 bpd to about 65,000 bpd since January 1990 at a cost of Rs. 190 million. It will now enable NRL to process additional about 4000 bpd of local Sindh crude which otherwise was being exported at not very attractive prices. The project is expected to save about $4.5 million per year in foreign exchange and curtail import of deficit fuel products by 0.65 million tons per year. The whole work of expansion has been achieved by contracting ENAR, a design engineering and consultancy subsidiary company of PERAC

Hydrocracker Projects:

This project is under execution. It envisages installation of a refining complex at Karachi for upgrading 1.5 million tons of low value crude residue (furnace oil) of the existing Karachi refineries and produce about 1.1. million tons of high value deficit products including LPG, motor gasoline/HOBC, kerosene oil/jet fuels & HSD. The Board Of Investment (BOI) approved the project in October 1989 as a joint venture between PERAC and Crescent Petroleum Company of Sharjah, UAE, at a total cost of Rs. 6840 million. Total requirement of Foreign Exchange amounting to US $162 million will be arranged by Crescent on a nonrecourse project financing basis. Crescent will take 35 per cent share in the equity while PERAC has 15 per cent, Islamic Development Bank of Jeddah 10 per cent, PSO and oil marketing companies will have 10 per cent and 30 per cent will be offered to the general public in the country. The project is expected to save US $80-100 million per year in foreign exchange on account of import substitution and scheduled for production in the year 1993.

Badin Refinery Project

A project proposal of PERAC to refine 30,000 bpd of crude oil being produced locally in lower Sindh is awaiting final approval by the Government. This refinery project is being set up at Talhar in District Badin close to the oilfields. The refinery will produce about 1.2 million tons/year of refined petroleum products such as LPG, motor gasoline, kerosene oil, diesel oil etc. The advantages of the refinery are expected to be great as it will save about US $ 27 million per year in foreign exchange which will repay its foreign cost of Rs. 810 million in less than two years. It will create employment opportunities for hundreds of people and help boost the economy" of this underdeveloped areas of Sindh.

Stage-II Expansion of NRL:

The state-II expansion of NRL envisaging the second stage of the expansion of NRL is going to be launched in future, following schemes:

a) B&M of Platformer and its associated Hydrobon Unit to process low value surplus Naphtha to produce high octane motor gasoline (28000 tons) and LPG (1750 tons/year) by increasing units capacity by 30 per cent. Both these products are deficit in the country.

b) Carryout Process Modifications at Propane Deasphalting and MEK Dewaxing Units of lube oil refinery to improve lube oil yields by 2400 tons/year and reduction in energy consumption by 5000 tons/year equivalent of F.O.

c) In-house electrical power generation of 7.5 MW by utilisation of high pressure steam available from existing boilers. This will ensure a reliable and uninterrupted source of power for the NRL refinery.

The above schemes will result in net foreign exchange saving of around US $3 million per year. The process design of the scheme has been completed and construction work is to start soon. The completion target is July 1991. Studies for Production of (a) Terephthalic Acis (TPA) and (b) Wax fractionation Plant are also in advanced stage. TPA, an intermediate raw material for production of polyester fibre can be produced locally by utilising surplus petroleum naphtha. Currently its demand is being met from imports. To meet this material's requirements for the existing and sanctioned/future polyester plants, a 100,000 tons/year TPA plant is required. PERAC is carrying out a detailed process and economic study through foreign consulstants based on which proposal for setting up the plant will be taken up for government formal approval.

Another study being carried ut by PERAC through foreign consultants is for the production of refined (oil free) waxes from the slack waxes produced at NRL. Currently almost entire requirements of refined wax (10,000-12,000 tons/year) is met by imports. The planned plant envisages process modifications and addition of some equipment at the existing dewaxing unit of NRL. The study will be completed in covering 4 months.

PERAC R & D Centre

To provide back-up services for the development of petroleum refining and petrochemical products and technology, PERAC is executing an R&D Project at a cost of about Rs. 90 million. It will carry out bench scale and semi-commercial pilot plant research and specialised analytical studies including work on environmental pollution controls.
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Title Annotation:State Petroleum Refining and Petrochemical Corp. Ltd.
Publication:Economic Review
Article Type:company profile
Date:Feb 1, 1990
Previous Article:Performance of OGDC (1988-89.) (Oil and Gas Development Corp.) (company profile)
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