U.S. Trade and Development Agency
1000 Wilson Boulevard, Suite 1600 * Arlington, Virginia 22209
Telephone (703) 875-4357 * Fax (703) 875-4009
FOR IMMEDIATE RELEASE CONTACT:
Donna Thiessen : (703) 875-4357
USTDA GRANT SUPPORTS REFINERY UPGRADE PROJECT
IN PAKISTAN
ISLAMABAD, PAKISTAN – (June 28, 2005) Increasing environmental standards at an oil refinery in Pakistan is a goal of a U.S. Trade and Development Agency (USTDA) grant awarded today to Pakistan Refinery Limited (PRL). The $400,000 grant will be used to partially fund a feasibility study of PRL’s planned upgrades at its Karachi refinery. The grant was officially conferred in a signing ceremony held today. Ambassador Ryan C. Crocker, U.S. Ambassador to Pakistan, and Mr. Muhammad Akram Peracha, PRL Operations Manager, signed the grant agreement on behalf of the U.S. government and PRL, respectively.
In addition to helping the refinery to meet Pakistan’s environmental regulations, the USTDA-funded study will examine proposed changes in the refinery’s production line that respond to trends in Pakistan’s energy market. Those trends stem from the Government of Pakistan’s efforts to encourage the use of domestically sourced hydropower, coal and natural gas to curb the nation’s growing dependence on imported crude oil and petroleum products.
As a result of the increasingly abundant availability of less expensive high heating value gas, most of the big fuel oil users in Pakistan are switching from oil firing to gas firing, thus reducing market demand for fuel furnace oil. PRL is seeking to upgrade its refinery in Karachi to reduce production of low demand furnace fuel oil, while increasing production of high demand middle distillates and premium motor gas and improving the quality of the PRL’s products in meeting Pakistan’s newly implemented environmental standards.
The USTDA grant awarded today will partially fund a study on the technical, economic, and financial viability of a refinery upgrades. PRL has selected Foster Wheeler USA Corporation, based in Clinton, New Jersey, to perform the study. In addition to the USTDA grant awarded today, both PRL and Foster Wheeler USA Corporation will contribute additional resources towards the completion of the study.
The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.
-30-