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PAK-ARAB REFINERY LIMITED
 
PARCO, as an energy company is the fulcrum and key building block in the country’s strategic oil supply and logistics. With the synergy of comprehensive and expanding oil pipeline network, integrated with a significant and modern refining capability, PARCO has emerged as the strategic fuel supplier to the country. PARCO is actively involved in various facets of oil storage, transportation, refining and marketing of energy products.

Incorporated in Pakistan in May 1974, as a public limited Company, Pak-Arab Refinery Limited (PARCO) is a joint venture between Government of Pakistan (GOP-60%) and Abu Dhabi Petroleum Investment (ADPI-40%). In the last 25 years, the company has embarked upon a comprehensive plan of growth and expansion by putting up new infrastructure projects in the energy sector and has achieved an equity base of over Rs. 18 billion and an asset base exceeding Rs. 91 billion. PARCO owns and operates country’s largest Refinery and Crude-cum-products Pipeline System. PARCO Pipeline system can best be described as the country’s energy lifeline. It consists of two pipeline systems i.e. KMK and MFM with a sophisticated telecommunications and SCADA System.


A) Karachi - Mahmood Kot (KMK) Pipline:
Karachi-Mahmood Kot (KMK) Pipeline System, which is country’s largest Cross-Country Oil Pipeline, was commissioned in 1981. The System consists of 16” dia 864 Km pipeline from Karachi to Mahmood Kot. The installed capacity is 4.5 million tons / annum with an average working of 335 operational days. Average daily pumping rate is 13,000 MT which can go upto 17,000 MT with the use of drag reducing technology, thus increasing the total capacity to 6.0 million tons / annum.

KMK is a crude oil cum product pipeline. It transports crude from Karachi to Mahmood Kot Dist. Muzaffargarh for Mid-Country Refinery, as well as imported High Speed Diesel for the oil marketing companies. It is one of only three pipelines in the world, which are capable of transporting both crude and refined products. PARCO has achieved this after study of similar international operations and thus gave the country much needed breathing space in meeting upcountry requirements of HSD before commissioning of the White Oil Pipeline.

During the year 2002-2003 following quantities were pumped through KMK Pipeline:


 
Year Kerosene High Speed Diesel Crude Total
2002-2003 - 1,889,095 3,236,656 5,125,751


B) Mahmood Kot - Faisalabad - Machike (MFM) Pipline:
In 1997, PARCO extended its Karachi to Mahmood Kot pipeline network upto Machike via Faisalabad. The network consists of 284 KM 18” dia pipeline from Mahmood Kot to Faisalabad and 80 KM 16” dia pipeline from Faisalabad to Machike. Thus, total length of MFM is 364 KM with a carrying capacity of 5.2 million tons / annum.


During the year 2002-2003 following quantities were pumped through MFM Pipeline:


 
(Figures in M. Tons)
Year Kerosene High Speed Diesel Total
2002-2003 52,213 1,700,528 5,125,751

Storage Details
(For KMK & MFM Piplines)

 
(Figures in M. Tons)
  HSD Kero Crude* Total
Keamari (spill over use) - - 30,000 30,000
Korangi 55,000 - 117,000 172,000
Mehmood Kot (spill over use) 10,000 - - 10,000
Machike 29,100 10,150 - 39,250
  53,750 10,200 - 63,950
Total 147,850 20,350 147,000 315,200

*Refinery Tankage



C) Mid Country Refinery (MCR):
PARCO has the most comprehensive state-of-the-art Mid Country Refinery (MCR), based on latest leading edge refining technology and processes. MCR was commissioned in September 2000 at Mahmood Kot Dist. Muzaffargarh. Total refining capacity is 100,000 BPD or 4.5 million tons / annum. Presently the Refinery is processing Upper Zakum and Arabian Light Crude which is transported through PARCO’s own KMK Pipeline System.

MCR is not only the critical inland supplier of petroleum products to the high consumption central and northern areas of Pakistan but has also helped in substitution of imports of refined value added oil products.

The Refinery includes different process units comprising of Crude Distillation, Vacuum Distillation, Visbreaker, GAS Concentration, Naphtha Hydro treating, CDR Platforming Units, Diesel Max unit, LPG and Kerosene Meroxes, Amine Treating and Sulphur Recovery units besides numerous offsites/utilities units and other permanent facilities. The Tank farm consists of 46 storage tanks having a storage capacity of 350,000 Tons.

Production and Storage Detail
 
 
Product Crude *Production at 100% Capacity
(Tons / Years)
**Tankage
(M.Tons)
LPG 192,000 2,300
MS 790,000 16,300
Kerosene / JP-1 POOl 562,000  
Kerosene   12,500
JP-1   15,800
HSD 1,326,400 55,700
Furnace Oil 1,636,600 34,000
Sulphur 25,000 -
JP-4 - 4,000
LDO - 5,100
Crude - 202,000
Total: 4,532,000 347,700
*Typical Production

 
**Excluding MCR Tankage at Kemari & Korangi


PARCO, through leadership and technical wherewithal was successful in introducing unleaded motor gasoline in the country in Jun e 2001, fully four years ahead of the World Bank recommended time frame. Very recently, another major initiative taken by PARCO is the introduction of high octane (90 RON) Motor Gasoline. Thus, PARCO is playing its role towards maintaining a healthier environment and improving quality-of-life.

D) Marketing Under Pearl:
PARCO, under the brand name of PEARL, started its marketing activities in January 2001, with launching of PEARL Gas, PEARL Fuel and PEARL Lubes.

Currently, PEARL lubes include a wide range of high quality lubricants imported from OMV Austria. However, firm plans are in hand to start local blending of lubricants.

After commissioning of Mid-Country Refinery Fuel Products were also included in the marketing initiative. PARCO is marketing Furnace Oil (FO) and Light Diesel Oil (LDO) to its Consumers as PEARL Fuel.

Under a Technical Services and Support Agreement (TSSA) SHV of Holand is marketing 25% of the LPG production as PARCO’s brand ‘PEARL Gas’.


E) TOTAL-PARCO Pakistan Limited (TPPL):
PARCO has also entered into a joint venture agreement with TotalFinaElf of France under the name of Total PARCO Pakistan Limited (TPPL), whereby petroleum products are marketed, through a rapidly emerging national network of retail outlets, more than 35 sites have already been commissioned and over the next decade about 500 stations will be dotted across the country.

 


 
(Figures in M. Tons)
Year Kerosene High Speed Diesel Crude Total
2002-2003 - 1,889,095 3,236,656 5,125,751