Shams ul Nisa

The Cnergyico PK Limited is undertaking a major brownfield upgrade to modernize and expand its operations, reports WealthPk. Despite global market fluctuations and local economic challenges, the company’s strategic investment aims to boost its growth and contribute to the transformation of Pakistan’s energy and industrial sectors.

Cnergyico’s leadership has emphasized that upgrading the existing refinery infrastructure is both a strategic business move and a national necessity. In its latest Director’s Report, the company underscored the importance of the recently amended Brownfield Oil Refining Policy, which offers incentives for modernizing refineries. The policy aims to boost domestic production of cleaner, higher-value fuels and lessen dependence on imported petroleum products.

Therefore, Cnergyico plans to invest over $1 billion to upgrade its refineries for the production of Euro V-compliant gasoline and diesel, while curbing the output of low-value furnace oil. The move aims to improve environmental compliance, boost efficiency, and strengthen the company’s market position. Additionally, the upgrade will further increase the production of high-demand fuels like High-Speed Diesel and Premier Motor Gasoline, aligning operations with evolving market needs.

Moreover, Cnergyico’s brownfield refinery upgrades are expected to deliver broad economic benefits, including reduced reliance on imported fuels, conservation of foreign exchange, and support for national energy self-sufficiency. The project is also poised to boost related industries and generate employment.

Despite facing high borrowing costs, inventory losses, and sluggish domestic demand, the company demonstrated resilience with a 49% increase in gross sales, reaching Rs279.7 billion by March 31, 2025. However, rising finance expenses and turnover taxes resulted in a net loss of Rs1.1 billion, underscoring the urgent need for policy reforms and improved operational efficiency.

Cnergyico is working with industry stakeholders to address regulatory and tax challenges, advocating for policy reforms to support refinery upgrade investments. Additionally, the company has urged authorities to reduce excessive fuel imports and smuggling, which has led to widespread stockpiles and significant inventory losses across the industry.

Hence, Cnergyico’s brownfield refinery upgrades represent more than just corporate investment; they are a catalyst for Pakistan’s industrial and economic revival. The company is setting new industry standards by modernizing its facilities, prioritizing sustainability, and pushing for policy reforms. Therefore, Cnergyico aims to lead Pakistan toward greater energy security, industrial growth, and economic resilience with strong stakeholder collaboration and supportive policies.

Credit: INP-WealthPk