CNCEC bags $242 million refinery contract Power and Energy

China-based China National Chemical Engineering Corporation-Haulu (CNCEC) has been awarded by the National Refinery Limited (NRL) a contract worth around $242.135 million of installing its various plants.

The contract work includes the installation of desulphurisation and isomerization plants and related units. The refinery has designed diesel desulphurisation unit to match up the environment standards of Euro 2. Likewise, isomerisation unit was confronted to boost the production of motor gasoline by 192,000 metric tons per year.

At present the Pacific Asia’s standards for clean fuel are distinct, differing broadly from nation to nation and needing major investment to match other criteria such as the Euro 2 standards. As per the Wood Mackenzie’s study of the clean fuels status in Pacific Asia, Pakistan will require a considerable investment to carry it refineries equals with the Euro 2 standards.

According to the Industry officials, refining companies in Pakistan would require to spend around $1 billion to regulate their diesel and gasoline productions with Euro 2 standards. Pakistan has set a 500 parts/M limit. The fuel generated by Attock Refinery, National Refinery, Pakistan Refinery, Byco and Pak Arab Refinery Co (Parco) all constitute one percent sulfur, corresponding to 10,000 parts/M. December 2012 was the basic deadline set to meet Euro 2 standard. However, when refineries failed to implement desulphurization by the end of December 2012, the economic coordination committee of the cabinet elongated the deadline to modify their operations by 2015.

The latest financial report by NRL also showed the above-mentioned units are likely to be commissioned by December 2015.

Since 1966, NRL has been refining crude oil. It added two refineries: one in 1977 and second in 1985. The petroleum refining and petrochemical company is employed in manufacturing and supplying of an extensive range of fuel products, like lubes, asphalts and specialty products for domestic consumption and export.

A net profit of Rs 961.875 million for the year ended June 30, 2014 as against the profit of Rs 2.845 billion in the preceding fiscal year has been posted by NRL. In FY14, the company’s earnings per share stood at Rs 12.03 as compared to Rs 35.59 in FY13. Overall sales revenue of the company stood at Rs 249.769 billion for the year as against the revenue of Rs 216.123 billion earlier. The company did not declare any payouts with the financial results.