Pakistan’s refinery modernization program has moved forward, with Cnergyico Pk Limited, Attock Refinery Limited (ARL), and National Refinery Limited (NRL) signing agreements with Inter State Gas Systems (ISGS) for the upgradation of their existing plants.
The agreements have been executed under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, following amendments made to the policy in August 2026.
Cnergyico signed its agreement with ISGS on September 24 after its upgradation plan received approval under the amended policy. ISGS has been designated by the Petroleum Division as the entity responsible for implementing the refinery upgrade program.
The agreement covers Cnergyico’s approved modernization project, under which the company plans to upgrade its existing refining facilities.
ARL has also completed the formal signing process with ISGS. The refinery said the agreement will allow it to move ahead with the modernization of its existing infrastructure, with a focus on efficiency and fuel quality.
The company said the upgrade program will support the production of Euro V standard fuels and help strengthen Pakistan’s long-term energy security.
NRL has separately signed its own Upgradation Agreement with ISGS, bringing the number of major refineries that have formally entered into agreements under the latest phase of the government’s program to three.
The refinery modernization drive is aimed at changing the output mix of Pakistan’s aging refining infrastructure. Under the policy, refineries are expected to increase production of higher-quality petrol and diesel while reducing their reliance on furnace oil.
The government first introduced the brownfield refinery policy in 2023. It was subsequently revised in February 2024 and amended again in August 2026 following delays in putting the investment program into effect.
The latest framework places implementation and monitoring with the Petroleum Division, with ISGS acting as the designated implementation entity.
The government has also set October 1, 2026, as the deadline for refineries to execute their upgrade agreements. Refineries that fail to meet the requirement face financial consequences under the revised framework, including changes related to the deemed duty applicable to high-speed diesel.
The broader program covers Pakistan’s five major refineries, namely PARCO, Pakistan Refinery Limited (PRL), NRL, Cnergyico, and ARL. The combined refinery upgrade plans have previously been estimated to attract around $6 billion in investment.
