Attock Refinery to Shut Main Crude Unit Briefly Amid High Stocks

January 3, 2026Zayn0

Temporary Shutdown of HBU-I at Attock Refinery

Attock Refinery Limited (ARL) has announced that it will temporarily shut down its main crude distillation unit, known as HBU-I, for three to four days starting 4 January 2026. The decision has been taken in response to low crude stocks and high inventories of refined products at the refinery, according to a notice issued to the Pakistan Stock Exchange (PSX).

HBU-I is one of the core processing units at ARL and has a capacity of 32,400 barrels per stream day (BPSD). A short pause in operations at this unit allows the company to rebalance incoming crude supplies with existing product stocks and to carry out planned maintenance without disrupting its overall supply commitments.

High Product Inventories and Lower Offtake by OMCs

In its PSX filing, ARL explained that the immediate trigger for the shutdown was reduced upliftment of key fuels, including premium motor gasoline (PMG) and high-speed diesel (HSD), by oil marketing companies (OMCs) during December 2025. With fewer orders and slower drawdown from storage tanks, product inventories at the refinery rose to levels that made it difficult to continue running the main crude unit at normal rates.

When refined fuel stocks build up faster than they can be sold or transported, refineries often scale back processing to keep operations efficient and avoid safety or storage constraints. ARL’s decision to temporarily halt HBU-I is therefore a routine operational step to align production with market demand and logistical capacity.

Maintenance Activities Planned During the Outage

ARL has indicated that it will use the three- to four-day shutdown window to carry out essential maintenance activities on HBU-I. Regular inspection, cleaning and repairs during such outages help refineries maintain efficiency, reduce the risk of unplanned breakdowns and ensure compliance with safety and environmental standards.

By combining inventory management with scheduled maintenance, the company aims to minimise the impact on operations while keeping the unit in good working condition. Once product stocks normalise and the maintenance work is completed, HBU-I is expected to resume normal processing without major disruption.

Other Units to Remain Operational, Supplies to Continue

Importantly for customers and market watchers, ARL has clarified that its other crude units and downstream process units will continue to operate during the HBU-I shutdown. This means the refinery will still be producing fuels and other products, even as one major distillation unit is temporarily taken offline.

The company has also assured stakeholders that committed volumes and uninterrupted dispatches for the current month will be maintained. In practical terms, this indicates that fuel supplies to OMCs and end-users should not face significant disruption, as ARL will rely on existing inventories and output from its remaining units to meet contractual obligations.

Communication with Regulators and Market Stakeholders

In its notice, Attock Refinery confirmed that it has communicated the development to the Securities and Exchange Commission of Pakistan (SECP) and other relevant authorities. This kind of disclosure is a standard requirement for listed companies, ensuring that investors and regulators are properly informed about changes that may affect operations or financial performance.

The refinery emphasised that the shutdown is temporary and falls under routine operational management rather than a long-term closure or capacity cut. By framing the move as a short, planned adjustment, ARL aims to reassure shareholders, lenders and customers that it remains focused on stable operations, safety and supply continuity despite short-term fluctuations in demand and inventory levels.

What the Temporary Shutdown Means for the Energy Market

For Pakistan’s energy market, the brief shutdown of HBU-I is a reminder of how changes in fuel demand and uplift patterns can ripple back through the refining system. When OMCs slow their purchases—whether due to pricing dynamics, seasonal trends or inventory strategies—refineries sometimes adjust throughput to avoid overproduction.

Because the outage is short and other ARL units will continue running, analysts do not expect a major impact on national fuel availability in the near term. However, they will be watching how quickly product offtake returns to normal levels and whether similar inventory-driven adjustments arise at other refineries. For now, ARL’s move appears to be a calculated step to manage stocks efficiently while keeping its long-term operations on track.

Zayn

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