The signs are positive for Pakistan's refining sector as increasing demand is met by an expanding refining infrastructure.
According to Pakistan's Business Recorder, there are clear signs of expansion in demand for the country's fuel and lubricants output, with demand for petroleum, oil and lubes set to reach 29m tons by the end of 2018 and more than 34 million by 2026.
Current consumption is 20m tons, according to the report with a national refining capacity of around 13m tons of crude annually from seven refineries. However, there are already plans for expansion to reduce the seven million ton import need, with many of the existing refineries currently not operiating at full capacity.
Amongst the refiners investing in improved infrastructure, MAL Pakistan announced the two-phase development of a 33m litre annual capacity blending plant costing Rs300m ($5m). The project will be backed by ExxonMobil and will include a lab, logisitics and training centre.
Other refiners slated to expand Pakistan's domestic output include Attock, Pakistan Refinery, National and Bosicar with investments totalling more than $1bn as well as the government-backed Khalifa Coastal Refinery which is set to cost an upwardly revised $6bn and owned by the Pak-Arab Refinery and Abud-Dhabi's International Petroleum Investment Company.