Mr. Mohammad Wasi Khan
President- Chemical Manufacturing Business, BOPL Byco Group
The only sector that has the largest potential & development therein can work as stimulus to downstream, is production of base chemicals.
Headquartered in Karachi-Pakistan, Byco Oil Pakistan Limited is a subsidiary of Byco Group that embarks presently around PKR 75 billion consolidated turnover annually which in near future will run into over PKR 300 Billion upon commissioning of its second oil refinery. Byco Group was founded by the Founder Chairman, Mr. Parvez Abbasi (Late) in mid-90’s with a vision to pioneer the change in the energy sector of Pakistan. With his vision, the company Byco Petroleum Pakistan Limited was formed in January 1995 as public limited company.
Companies under Byco umbrella are: Byco Oil Pakistan Limited (BOPL), Oil Refining & Chemical Manufacturing, Byco Petroleum Pakistan Limited (BPPL), Oil Refining & Petroleum Marketing, Universal Terminal Limited (UTL), and Infrastructure & Logistics.
In April 7, 2006, Byco Oil Pakistan Limited (BOPL), in an effort to further expand its presence in the local oil refinery and petrochemical industry, commenced work on a 120,000 bpd refinery and a 27,300 bpd Aromatics plant. Byco's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.
Mr. Mohammad Wasi Khan is the President of Chemical Manufacturing Business, BOPL, since 2009.
Mr. Khan has 31 years of experience in oil and gas industry. He initiated his career in Saudi Arabia, Aramco, in Operations Engineering, then joined National Refinery Limited (NRL) Karachi in 1981. He held various key positions in all operations, technical and business functions of the refinery to become Deputy Managing Director (Operations). In 2005, he moved to Bosicor Pakistan Limited as President & CEO. He has on his credit a number of successfully completed major refinery projects. Byco’s oil marketing business was initiated by him which now has grown to become 6th largest Oil Marketing Company in Pakistan.
In Face2Face, talking with Ms. Madhu Soni- Sr. Editor & Correspondent, Mr. Md. Wasi Khan discusses about Building-block petrochemicals at length.
Mr. Wasi Khan, welcome to Face2Face!! Initiating the talk, may we request your word on how BYCO finds itself placed in Petrochemical segment over the globe and in Pakistan?
Pakistan is a market of 180 million people where, like any developing nation, products based on petrochemicals are visibly growing which, presently, due to lack of indigenous manufacturing facilities for base chemical, is creating a huge potential for such facility and Byco is the first to take a step in this direction. Second, Byco is an integrated oil refinery where upgradation stems from the top of the barrel conversion. Production of petrochemical will bring economic stronghold for the Company particularly when the feedstock naphtha is available from its own refinery and other local refineries. Presently all local refineries are exporting their Naphtha as surplus product to far eastern countries as feedstock to petrochemical plants merely to be imported back in the shape of finished petrochemicals in the country.
Well, talking Building-block in specific, until 1991 no production facilities for petrochemicals viz. Polyolefin, Olefin etc. existed. In the view of current market, what state exists?
As it is, to date there has been no change with respect to the production of base chemicals or building block petrochemicals; olefins and aromatics in the country. There have been larger developments in the downstream side though. The country has a PTA facility with current capacity of 350,000 TPA, which is planned to be doubled in next 4 to 5 years. Byco’s Aromatics Complex will be the first in the building block petrochemicals/aromatics.
So, considering what you said; how will these ‘larger developments in PTA’ affect the domestic Paraxylene market?
Ever since Korean company Lotte has acquired the Karachi based PTA facility (originally established by ICI), they are going on a progressive path. Recently, there have been indications from them for almost doubling the capacity. Of course with the increase in domestic requirement of Para Xylene, there will be pressures on the supply end, and for which, I suppose, local and regional sources should be geared up. As for Byco going into PTA production, we can consider this option in future but we will prefer to remain on the base chemicals side for the time being or at least for next 5 years though we have plans in future to add on Naphtha cracker as base chemicals' second branch.
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