PARCO

INTRODUCTION:

Pak-Arab Refinery (PARCO) is a fully

integrated energy company and is the second largest company in the Pakistans
corporate sector by sales (PKR 250BN+) and has an asset base of over PKR 141
billion. PARCO, a Joint Venture between Government of Pakistan and the Emirate of
Abu Dhabi was incorporated as a public limited company in 1974. The Government
of Pakistan holds 60% of the share holding while 40% of the shares are held by
Emirate of Abu Dhabi through its Abu Dhabi Petroleum Investment Company L.L.C.
(ADPI), a holding company with majority shareholding (75%) held by International
Petroleum Investment Company (IPIC) and minority shareholding (25%) held
by OMV, which is the largest listed manufacturing company in Austria.

The major business activities include Crude Oil Refining and Transportation,
Storage and Marketing of POL Products. With a refining capacity of 100,000 BPD, combined
storage capacity of over one million tons, a marketing joint venture with TOTAL (France) and a
technical support venture with OMV (Austria); PARCO is the strategic fuel supplier for Pakistan
with a broad portfolio of operational ventures. The organization encompasses Pakistans largest
refinery and 2000 km of cross country pipeline network, including that of its subsidiary PAPCO.
In 2010 set up a Diesel Hydro Desulfurization Unit to ensure that Diesel produced by the
refinery meets international Euro-II standards. PARCO also commissioned a Biturox plant in
2012, which is expected to producing high quality road paving bitumen which is mandated for
infrastructure development.
Most recently in September 2012, Pak-Arab Refinery completed its first
acquisition by acquiring 100% shareholding of SHV Energy Pakistan, which prior to the
acquisition was Pakistan's largest LPG marketing company and PARCO's strategic partner since
2001.

COMPANIES:
PARCOs record of persistent success and credibility created a strong
pull to bring in fresh investments in the time when foreign investors were generally reluctant to
come in Pakistan.

PAK ARAB PIPELINE COMPANY LIMITED (PAPCO):

Pak Arab
Pipeline Company Limited (PAPCO) is an excellent example of Public-Private partnership.
Shell (26%), PSO (12%) and TOTAL PARCO Marketing Limited (formerly known as Chevron
Pakistan Limited) (11%) joined hands with PARCO (51%) to build and operate a US$ 480
million cross-country pipeline system for transporting High Speed Diesel from Karachi ports to
up-country locations. PAPCO was commissioned in March 2005, comprising 786 Km of 26 dia
cross-country pipeline, storage tanks, pumps and other allied facilities. PAPCO has proven
immensely successful as the main fuel carrier for the country.

TOTAL PARCO PAKISTAN LTD (TPPL):

TOTAL PARCO PAKISTAN LTD
(TPPL) was established in 2001 a joint venture between PARCO and TOTAL of France for
marketing of consumer petroleum products through its network of retail outlets across Pakistan.
After the acquisition of Chevron Pakistan Limited (renamed as TOTAL PARCO Marketing
Limited) by TPPL, today, the TOTAL PARCO network is a 50:50 joint venture with 765
retail fuel outlets, plus a lubricants blending and marketing business, making it the 3rd Largest
Oil Marketing Company in Pakistan.

PARCO PEARL GAS (PVT) LTD:

PARCO Pearl Gas (Private) Limited (PPGL) is a
wholly owned subsidiary of PARCO. PPGL is the largest LPG marketing company in Pakistan,
selling around 90,000 metric ton of LPG per annum in cylinders and bulk. It has a nation-wide
network of distributors and has expertise in addressing industrial applications through its
Industrial and Commercial solutions. The product is marketed nationally under brand names of
Pearl Gas, Super Gas and Super Gas Bulk. Our vast portfolio covers all the product segments in
the market. PPGL has been working towards providing energy solutions, keeping in view all
possible dynamics and dimensions in the market.

REFINERY:
Commissioned in the year 2000 and built at a cost
of US$ 886 million, PARCO Mid-Country Refinery (MCR) at Mahmoodkot near
Multan has added 4.5 million tons per annum (100,000 BPD) to the countrys
refining capacity. MCR was one of only five refineries built in the world at the
beginning of the millennium and, therefore, can be called the latest in terms
of generations.
PARCOs Mid-Country Refinery (MCR) is the countrys most modern and
largest operating refinery and employs critical processes involved in refining. The Refinery
produces Liquefied Petroleum Gas (LPG), High Octane Blending Component (HOBC),
Kerosene, Jet Fuel (JP-1 & JP-4), High Speed Diesel (HSD), Light Speed Diesel (LDO), Furnace
Oil (FO) and Sulphur. These products are being delivered to customers through Gantry Operation
at MCR as well as via PARCOs Mahmoodkot-Faisalabad-Machike (MFM) Pipeline System.
MCR is capable of producing lead free Motor Gasoline of 90 Octane. . It produces fuel oil with

low sulphur content meeting the international standards and has a Sulphur Recovery Unit with
tail gas treatment to avoid pollution.
The Refinery has a refining capacity of 100,000 BPD of a mixed Arabian
Light/Upper Zakhum/Murban crude slate, which is transported to the Refinery site by PARCOs
existing pipeline System from Karachi. MCR being a grassroots Refinery, has both primary and
secondary processing facilities and supporting infrastructure, which allows the process units to
operate in an efficient manner in order to produce the desired slate of products in an economic
and flexible manner.
The primary control centre is the Main Control Room with a
microprocessor-based Distributed Control System (DCS). In addition, three subsidiary control
rooms collectively manage eleven On-site Process Units and Off-site/utilities and other
permanent facilities with 46 tanks to store Crude Oil, intermediate feeds stocks and finished
products besides other specific areas of the refinery.

DHDS PLANT:
Government of Pakistan (GOP) planned to introduce Euro II
complaint fuels in the country. In pursuance of the plans, GOP directed to all refineries in the
country to develop facilities to meet the above objective. To meet GOPs requirement regarding
Euro II compliant High Speed Diesel, PARCO was the first refinery to take initiative and
commissioned a Diesel Hydro Desulphurization (DHDS) plant at their Mid-Country Refinery in
2010, at a cost of US$132 million.
By producing HSD with low-sulphur content, this plant greatly
contributes towards a greener environment. The DHDS plant is equipped with a maximum
capacity of 26,000 barrels per day, and reduces sulphur contents in High Speed Diesel (HSD)
from 7,000 parts per million to 500 parts per million which is an EURO II requirement. This is
yet another important initiative of PARCO which complies with the Government of Pakistans
directive to reduce sulphur contents in petroleum products.
With the timely completion of the DHDS project, PARCO has
accomplished yet another milestone to greatly augment the energy system of the country. With
more projects currently in the pipeline, PARCO is determined to continue its mission and
maintain its pivotal role in the countrys Energy Sector.

ASPHALT AIR BLOWING UNIT:

PARCOs Mid Country Refinery
(MCR) has capability to produce multiple petroleum products. Continuing its strategy of
expansion and diversification, PARCO has also added US$ 32 million Asphalt Air Blowing Unit
(AABU) for the production of road and industrial grade Asphalt.
AABU with a production capacity of 500 metric tons per day, fulfills all
requirements of production flexibility, safety and environmental standards. The plant meets the
highest standards of bitumen processing.
The Austrian Company, POERNER, a world leader in Bitumen processing
technology has provided the license, design and key plant and equipment to PARCO. The
Product has been branded, PARCO Biturox. Together with the Licensor, PARCO is producing
premium bitumens like Multi- grades for roads with extreme traffic load conditions and for
extended service life.
PARCO Biturox offers the bitumen grades of the highest quality with high
thermal stability and durability:
PEN Grade Bitumen (60/70, 80/100)
Multigrade Bitumen (30/40, 40/50)
Industrial Bitumen (10/20)

SKEY FACTS & FEATURES:

The Refinery is located at Mahmoodkot,
which is in the Muzaffargarh District of Pakistan. The city of Multan, only 65 km, from the
Refinery is well connected with a national communications network of rail, road and air. The
nearest rail link is through Mahmoodkot which is about five kilometers from the Refinery.
At Mahmoodkot, the oil marketing companies are operating a petroleum
product distribution terminal. This terminal, known as Joint Installation of Marketing companies
(JIMCO), is connected by a pipeline with PARCOs Mahmoodkot Terminal. At this terminal,

HSD produced at the refinery and received from Karachi through PAPCO Pipeline is filled in rail
wagons and road tankers for transportation to various locations in Punjab and KPK provinces.
Similarly PARCOs MahmoodkotFaisalabadMachike (MFM) Pipeline
system originates from PARCOs Mahmoodkot terminal. This Pipeline carries HSD and
Kerosene to Machhike, near Sheikhupura, via Faisalabad.

PRODUCTS & SERVICES:

LPG:
LPG stands for Liquified Petroleum Gas. The composition of LPG is Hydrogen and
Carbon, also known as Hydrocarbons. Specifically, LPG consists of a combination of Propane
(C3H8 ), and Butane ( C4H10).
LPG can be obtained as a co-product of refining of crude oil at refineries, or extracted
from streams of natural gas from oil and gas fields. Propane and Butane are both gases in

ambient conditions but can be liquified under modest pressure and temperature conditions.
Furthermore, LPG can safely and easily be stored at room temperature.

Benefits of LPG:

LPG is a very clean burning fuel, with lower greenhouse gas emissions than any other fossil
fuel when measured on a total fuel cycle, and is thus considered an environment friendly fuel
source. It is also non-toxic and will not contaminate soil or aquifiers in the event of a leak.
The energy content and calorific value per unit of LPG is higher than many other commonly
used fuels, including coal, natural gas, diesel, petrol, fuel oils, and biomass-derived alcohols.
Due to its versatile nature, LPG is used in more than a thousand applications, from cooking,
heating, air conditioning, and automobiles, to aerosol propellant and foam manufacturing. It is
also used to create SNG or Synthetic Natural Gas.

Transportation and storage of LPG is relatively easy, and it can be used virtually anywhere. It
does not require a fixed network and will not deteriorate over time.

 LPG is easily interchangable with natural gas and thus a good backup fuel for the industry in
times of natrual gas shortages. When used as SNG, it does not need any changes in pipeline
network or sizes, and provides the convenience of switching between natural gas and LPG
without modifying appliances.

GASOLINE:
Gasoline, also known as petrol, is a transparent, petroleum-derived liquid
that is used primarily as a fuel in internal combustion engines. It consists mostly of organic
compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives.
On average, a 42-gallon barrel of crude oil (159 L) yields about 19 US gallons (72 L) of gasoline
when processed in an oil refinery, though this can and does vary based on the crude oil
source's assay.

The characteristic of a particular gasoline blend to resist igniting too early

(which causes knocking and reduces efficiency in reciprocating engines) is measured by its octane

rating. Gasoline is produced in several grades of octane rating. Tetraethyllead and other lead
compounds are no longer used in most areas to regulate and increase octane-rating, but many other
additives are put into gasoline to improve its chemical stability, control corrosiveness and provide
fuel system 'cleaning,' and determine performance characteristics under intended use. Sometimes,
gasoline also contains ethanol as an alternative fuel, for economic or environmental reasons.

Gasoline, as used worldwide in the vast number of internal combustion engines used in transport
and industry, has a significant impact on the environment, both in local effects (e.g., smog) and in
global effects (e.g., effect on the climate). Gasoline may also enter the environment uncombusted,
as liquid and as vapors, from leakage and handling during production, transport and delivery, from
storage tanks, from spills, etc. As an example of efforts to control such leakage, many (underground)

storage tanks are required to have extensive measures in place to detect and prevent such
leaks] Gasoline contains benzene and other known carcinogens.

ASPHALT:
Asphalt, occasionally, also known as bitumen is a sticky, black and
highly viscous liquid or semi-solid form of petroleum. It may be found in natural deposits or may be a
refined product; it is a substance classed as a pitch. Until the 20th century, the term asphaltum was
also used.[6] The word is derived from the Ancient Greek.

The primary use (70%) of asphalt/bitumen is in road construction, where it is

used as the glue or binder mixed with aggregate particles to create asphalt concrete. Its other main
uses are forbituminous waterproofing products, including production of roofing felt and for sealing flat
roofs.[8]
The terms asphalt and bitumen are often used interchangeably to mean both
natural and manufactured forms of the substance. In American English, asphalt (or asphalt cement)
is the carefully refined residue from the distillation process of selected crude oils. Outside the United
States, the product is often called bitumen. Geologists often prefer the term bitumen. Common
usage often refers to various forms of asphalt/bitumen as "tar", such as at the La Brea Tar Pits.
Another archaic term for asphalt/bitumen is "pitch".