National Refinery Limited

National Refinery Limited (NRL) is a Pakistani oil refining and petrochemical company headquartered in Korangi, Karachi. Its business covers the manufacture and sale of petroleum fuels, lubricant base oils, asphalt and bitumen products, waxes, and BTX aromatics. The company serves Pakistan’s domestic petroleum market while also exporting selected products, including naphtha and specialty refinery outputs. NRL is part of the Attock Group and is described as Pakistan’s second-largest refinery by crude processing capacity and the country’s only producer of lube base oils. NRL was incorporated on 19 August 1963 by a consortium of Pakistani industrialists led by the Amin Group. At the beginning of its development, the company entered into an agreement with the American International Oil Company for Iranian crude supplied from the Darius offshore field. The arrangement also included technical assistance and the organization of a US$10 million loan through the Bank of America. NRL’s first lube refinery was completed in 1966 by Italy’s SNAM Progetti and was formally inaugurated in August of that year by President Ayub Khan. The original unit was designed to process approximately 3.97 million barrels of crude annually and to produce about 533,400 barrels of lube base oils per year. The company was nationalized in 1972 under Pakistan’s Economic Reforms Order and became part of the state-owned State Petroleum Refining & Petrochemical Corporation, commonly known as PERAC, in 1974. During the following decades, NRL expanded beyond lubricants. A hydroskimming fuel refinery entered service in 1977, followed by a second lube refinery and a BTX petrochemical unit in 1985. Fuel-refining capacity was expanded in 1990 through two investment phases, raising the facility’s designed crude-processing capability substantially. NRL remained under government control through the 1990s and was placed under the administrative control of Pakistan’s Ministry of Petroleum & Natural Resources in 1998. The government added the company to its privatization program in 2003, proposing the sale of a controlling stake and transfer of management authority. In July 2005, subsidiaries of the Attock Group acquired majority ownership. Pakistan Oilfields Limited and Attock Refinery Limited each held 25 percent of NRL’s shares after the transaction, while the Islamic Development Bank of Saudi Arabia held a further 15 percent, according to the referenced company history. Post-privatization investment focused on cleaner fuels and improved refinery conversion. In 2007, NRL commissioned a Diesel Hydro Desulphurisation unit to produce Euro II-compliant high-speed diesel. It also commissioned an isomerisation unit in its naphtha block to process light naphtha for gasoline production. The company’s Korangi Creek complex now comprises two lube refineries, a hydroskimming fuel refinery and a BTX petrochemical plant, with total crude-processing capacity of approximately 70,000 barrels per stream day. Its product slate includes motor gasoline, kerosene, jet fuels, high-speed diesel, liquefied petroleum gas, furnace oil, lube base oils, bitumen, wax, asphalt-related products and aromatic petrochemicals. Most products are sold in Pakistan, while selected streams are exported. NRL’s position is therefore based on integrated refining, a distinctive domestic lube-base-oil capability and its strategic role in Pakistan’s petroleum supply chain.

National Refinery Limited was incorporated in Pakistan on 19 August 1963 by a consortium of local industrialists led by the Amin Group. During its formative period, the company arranged Iranian crude supplies through an agreement with the American International Oil Company. The agreement combined crude procurement with technical support and a US$10 million financing arrangement through the Bank of America. NRL’s first lube refinery was designed and built by SNAM Progetti of Italy and commissioned in 1966. It had an approximate annual crude-processing design capacity of 3.97 million barrels and lube-base-oil capacity of 533,400 barrels. The plant was inaugurated in August 1966 by President Ayub Khan. This early focus on lubricants later became a defining feature of the company, which is identified as Pakistan’s only producer of lube base oils. In 1972, the company was nationalized under the Economic Reforms Order promulgated during the government of Zulfikar Ali Bhutto. Two years later, it was placed within PERAC, the state-owned State Petroleum Refining & Petrochemical Corporation. NRL expanded its fuel and petrochemical capabilities during the state-ownership period. A hydroskimming fuel refinery supplied by Industrial Export Import of Romania was commissioned in 1977. A second lube refinery and a BTX unit were added in 1985. The BTX facility was designed to produce benzene, toluene and xylene-related aromatic products. Fuel-refinery capacity was subsequently expanded in 1990 through two projects, taking the designed capacity from its earlier level to approximately 16.5 million barrels per year and later to about 17.49 million barrels per year. In November 1998, administrative control was transferred to Pakistan’s Ministry of Petroleum & Natural Resources. The government included NRL in its privatization program in June 2003, proposing to sell 51 percent of the equity and transfer management control to a private investor. The privatization process culminated in July 2005 when Attock Group subsidiaries acquired majority ownership. After the transaction, Pakistan Oilfields Limited and Attock Refinery Limited each held 25 percent, while the Islamic Development Bank of Saudi Arabia held 15 percent, according to the referenced account. NRL undertook important modernization projects after the change in ownership. In 2007 it commissioned a Diesel Hydro Desulphurisation unit, enabling production of Euro II-compliant high-speed diesel, and an isomerisation unit in the naphtha block for processing light naphtha into gasoline-related products. The projects strengthened the refinery’s ability to meet fuel specifications and broadened its product mix. The company’s Korangi Creek complex in Karachi consists of two lube refineries, one hydroskimming fuel refinery and a BTX petrochemical plant. The combined complex has an approximate crude-processing capacity of 70,000 barrels per stream day. Lube operations produce base oils, bitumen, wax and other specialty outputs, while the fuel refinery produces gasoline, kerosene, jet fuels, Euro II high-speed diesel, LPG and furnace oil. Naphtha is exported, and most other products are marketed domestically. NRL also became involved in a contractual payment dispute connected with a 1998 crude-supply arrangement involving Saudi Aramco. In 2017, Pakistan’s Supreme Court upheld a State Bank of Pakistan fine and ordered the company to pay Rs 305 million to the central bank. The State Bank had acted as sovereign guarantor for payments under the arrangement. Despite this legal and regulatory episode, NRL remains an active refinery and petrochemical company within the Attock Group.

• 2017

  Supreme Court upholds payment-related fine

  [1]National Refinery Limiteden.wikipedia.org

  Pakistan’s Supreme Court upheld a State Bank penalty connected with delayed payments under a Saudi crude-supply contract.

• 2007

  Fuel-quality and gasoline projects commissioned

  [1]National Refinery Limiteden.wikipedia.org

  NRL commissioned a Diesel Hydro Desulphurisation unit and an isomerisation unit in its naphtha block.

• 2005

  Attock Group takes majority stake

  [1]National Refinery Limiteden.wikipedia.org

  Attock Group subsidiaries acquired majority ownership of NRL.

• 2003

  Added to privatization program

  [1]National Refinery Limiteden.wikipedia.org

  The Pakistani government proposed selling a controlling stake and transferring management control to a private investor.

• 1990

  Fuel capacity expanded

  [1]National Refinery Limiteden.wikipedia.org

  Two expansion phases increased the fuel refinery’s designed annual crude-processing capacity.

• 1985

  Second lube refinery and BTX unit added

  [1]National Refinery Limiteden.wikipedia.org

  The company commissioned a second lube refinery and a BTX petrochemical unit.

• 1977

  Fuel refinery commissioned

  [1]National Refinery Limiteden.wikipedia.org

  NRL brought a hydroskimming fuel refinery into operation.

• 1972

  Nationalization

  [1]National Refinery Limiteden.wikipedia.org

  The company was nationalized under Pakistan’s Economic Reforms Order.

• 1966

  First lube refinery commissioned

  [1]National Refinery Limiteden.wikipedia.org

  NRL commissioned its first lube refinery, designed and constructed by SNAM Progetti, and formally inaugurated the facility in August.

• 1963

  Company incorporated

  [1]National Refinery Limiteden.wikipedia.org

  National Refinery Limited was incorporated on 19 August by a consortium of Pakistani industrialists led by the Amin Group.

A major Pakistani integrated refinery and petrochemical producer, distinguished by its large Karachi complex and its status as the country’s only lube base oil producer.

• Lubricant intermediates

  Lube base oils

  Base oils produced by NRL’s two lube refineries for use in lubricant formulation and related industrial applications. Lube production is a central differentiator for the company, which is identified as Pakistan’s only lube base oil producer.

• Refined fuels

  Motor gasoline

  Gasoline produced through NRL’s fuel-refining operations, supported by the naphtha block’s isomerisation capability. The product is primarily marketed in Pakistan.

• Refined fuels · 2007

  High-speed diesel

  Diesel fuel produced by the refinery, including Euro II-compliant high-speed diesel enabled by the Diesel Hydro Desulphurisation unit commissioned in 2007.

• Aviation fuels

  Jet fuels

  Kerosene-based aviation fuels identified in NRL’s product slate as JP-1 and JP-8. These products are manufactured within the company’s fuel-refining operations.

• Petrochemicals · 1985

  BTX aromatics

  Aromatic petrochemical products including benzene, toluene and xylene streams from NRL’s BTX unit, commissioned in 1985.

• Specialty refinery products

  Bitumen, asphalt and wax

  Specialty outputs of the lube-refinery complex, including bitumen, asphalt-related products and waxes for industrial and infrastructure uses.

• 2017

  Payment dispute involving Saudi crude supply

  The Supreme Court of Pakistan upheld a State Bank of Pakistan fine against NRL concerning delayed payments to Saudi Aramco under a 1998 crude-supply contract. The court ordered payment of Rs 305 million to the central bank, which had acted as sovereign guarantor.

  Source

Read more

• 2007

  Invest in cleaner diesel and gasoline processingStrategy

  Background

  NRL sought to improve fuel quality and expand gasoline-processing capability following its change in ownership.

  Action taken

  The company commissioned a Diesel Hydro Desulphurisation unit and an isomerisation unit in the naphtha block.

  Aftermath

  The projects enabled production of Euro II-compliant high-speed diesel and increased the refinery’s ability to process light naphtha for gasoline production.

  Source

• 2005

  Accept majority acquisition by Attock Group subsidiariesM&A

  Background

  The Pakistani government had placed NRL in its privatization program and proposed the sale of a controlling stake with management transfer.

  Action taken

  Attock Group subsidiaries acquired majority ownership of National Refinery Limited in July 2005.

  Aftermath

  NRL became part of the Attock Group, with Pakistan Oilfields Limited and Attock Refinery Limited each reported to hold 25 percent after the transaction.

  Source

• 2007

  NRL commissions Euro II diesel and naphtha processing projects[1]National Refinery Limiteden.wikipedia.org

  Product launch

  The company added a Diesel Hydro Desulphurisation unit for Euro II-compliant high-speed diesel and an isomerisation unit for light-naphtha processing in gasoline production.

• 2005

  Attock Group acquires majority ownership[1]National Refinery Limiteden.wikipedia.org

  M&A

  Subsidiaries of the Attock Group acquired a majority shareholding in National Refinery as part of Pakistan’s refinery privatization process.

• 1974

  National Refinery is transferred to PERAC[1]National Refinery Limiteden.wikipedia.org

  Other

  NRL became part of the state-owned State Petroleum Refining & Petrochemical Corporation.

• 1972

  National Refinery is nationalized under Pakistan’s Economic Reforms Order[1]National Refinery Limiteden.wikipedia.org

  Other

  The Pakistani government nationalized National Refinery under the Economic Reforms Order, beginning a period of state ownership and administration.

1. 1National Refinery Limiteden.wikipedia.org
2. 2Attock Group Announces Financial Results for Q1 FY20propakistani.pk
3. 3National Refinery shuts down operations as FO stocks pile upthenews.com.pk
4. 4NRL announced as associate sponsors of the in-Cumbria Business Awardsnewsandstar.co.uk
5. 5Telstra announces Kayo partnership with NRL & AFL Live app integrationmumbrella.com.au