PARCO secures 140,000 barrels via new routes
Pak Arab Refinery Limited (PARCO) has arranged 140,000 barrels of crude oil through alternative supply routes following closure of Strait Hormuz to maintain refinery operations amid regional logistics disruptions.
Pak-Arab Refinery Company has worked out alternative route of red sea to import 140,000 barrels of crude oil to ensure uninterrupted refinery operations, as regional supply constraints disrupted routine shipments.
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“We are going to import crude oil through red sea after closure of Hormuz strait following Gulf region tension,” industry official told NewzTodays.
The state-backed refiner moved quickly to secure cargoes after logistical challenges affected regular crude inflows. The alternative arrangement aims to prevent production slowdowns and stabilize domestic fuel supplies at a time of heightened market sensitivity.
PARCO operates one of Pakistan’s largest refineries at Mid Country Refinery in Mahmoodkot. The facility has a processing capacity of about 100,000 barrels per day, according to company disclosures. It plays a critical role in supplying diesel, petrol and other petroleum products across the country.
Pakistan relies heavily on imported crude to run its refineries. According to data from the Pakistan Bureau of Statistics, petroleum group imports stood above $15 bn in FY2024, reflecting both higher global prices and steady demand growth. Any disruption in crude supply can quickly translate into pressure on domestic fuel availability.
The oil marketing chain is closely monitored by the Oil and Gas Regulatory Authority, which reviews pricing adjustments and supply conditions. OGRA revises petroleum product prices fortnightly in line with global benchmarks and exchange rate movements.
Industry analysts say securing 140,000 barrels provides short-term operational cover. At a refining capacity of 100,000 barrels per day, the additional crude could support more than a day’s full-capacity processing. This buffer helps avoid unscheduled shutdowns that can disrupt downstream distribution.
PARCO is a joint venture between the Government of Pakistan and the Emirate of Abu Dhabi. The company also operates an extensive pipeline network transporting crude and refined products across Punjab and other regions. Its infrastructure reduces reliance on road transport and lowers distribution costs.
The government has been pushing refinery upgrades under the Pakistan Oil Refining Policy 2023. The policy aims to encourage deep conversion projects and improve Euro-V compliant fuel output. Existing refineries have faced pressure to modernize facilities to meet cleaner fuel standards and reduce furnace oil production.