Attock Refinery Limited Embarks on $600 Million Upgrade to Modernize Operations and Enhance Environmental Compliance

Attock Refinery Limited (ARL), Pakistan’s oldest and one of its most strategically important oil refineries, has taken a major step toward modernization with the signing of a $600 million agreement with Italian engineering firm Studi Tecnologie Progetti S.p.A. (STP). The deal, finalized in June 2025, covers Front End Engineering Design (FEED) and Project Management Consultancy for ARL’s ambitious upgradation project, which is among the largest investments in Pakistan’s refining sector to date.

The project aims to significantly enhance ARL’s product quality and environmental compliance. Central to the upgrade is the integration of a Continuous Catalyst Regeneration (CCR) unit and a revamp of the Diesel Hydro Desulfurization Unit, based on advanced FEED studies conducted with UOP/Honeywell of the United States. These improvements will enable ARL to produce fuels that meet modern international standards, reduce emissions, and support Pakistan’s transition to cleaner energy.

This initiative aligns with the government’s broader $6 billion refinery upgradation policy, which seeks to encourage investment, improve fuel quality, and reduce reliance on imported petroleum products. Recent government actions to resolve longstanding taxation and regulatory issues have helped unlock these investments, providing a more stable environment for refinery modernization across the country.


 Attock Refinery Limited 5-year stock market price (PSE: ATRL)

ARL’s upgrade comes at a time when the company, like other Pakistani refineries, faces challenges from fluctuating crude supplies, evolving environmental standards, and the need for greater operational efficiency. The partnership with STP is expected to accelerate ARL’s shift toward value-added, environmentally friendly fuel production, reinforcing its role as a key supplier to both civilian and defense sectors.

With this investment, ARL is positioning itself as a leader in Pakistan’s energy transition, demonstrating resilience and adaptability amid a changing regulatory and market landscape. The upgrade not only secures ARL’s competitiveness but also supports national energy security and economic growth by ensuring a reliable supply of high-quality, compliant fuels.

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