KARACHI: Oil refiner Byco has begun construction works on two plants to reduce sulphur content in diesel and convert furnace oil into gasoline and diesel, the company said on Tuesday.
Byco became the first refinery in Pakistan to announce plans of upgrading facilities to ensure environmental compliance and sustainable profitability
The company begun civil works construction earlier this year at its refining complex. In April last year, Byco announced plans to upgrade its refining complex with the installation of two major new additions to its refineries: diesel hydro desulphurising (DHDS) and fluidised catalytic cracking (FCC) units.
“As per our planned schedule, Byco has commenced civil works for the installation of our DHDS and FCC units,” Wasi Khan, chairman of Byco said in a statement.
“The addition of the DHDS and FCC facilities to our refining complex will enable Byco to produce Euro 5 and Euro 6 compliant diesel and gasoline as per the government’s directive.” Khan further said the upgrade will enable Byco to reduce production of low value furnace oil and enhance products’ quality, making them better for the environment as well as more valuable for business.
The new units to be installed include pre and post treatment plants, including amine and sour water systems and sulphur recovery plant, vacuum distillation, selective hydrogenation process, alkylation, catalytic naphtha hydrotreater, catalytic reformer, dimersol, gasoline merox, sweet frac, C3, C4 splitter and gas condensation units.
Byco is also engaged in petroleum marketing and logistics. The company was able to limit the reduction in the company’s gross sales to 5 percent for the year to June 30 through implementation of strategies.
The company posted loss of Rs2.4 billion in FY2020 compared to loss of Rs1.6 billion a year earlier.
Byco’s gross profits, however, increased 48 percent to Rs2.9 billion from Rs1.9 billion due to better pricing of crude cargos. Operating expenses remained within budget. Due to rupee depreciation, the company booked an exchange loss of Rs514 million. Finance costs increased due to higher interest rates.
The global energy industry was facing some of the most daunting challenges ever as lockdown related to COVID-19 brought business activities to a standstill and decimated fuel demand.
In Pakistan, oil demand fell 35 percent following nationwide lockdown for over three months.
However, sales of petroleum products increased 11 percent to 8.1 million tons during the first five months of the current fiscal year of 2020/21 as reopening of economy boosted energy demand.
Source: The News