ISGS takes central role in multibillion-dollar refinery upgrade programme, replacing OGRA in key policy functions

Pakistan's federal government has named Inter State Gas Systems (ISGS), a state-owned company, as the implementation entity for the 2023 oil refining policy covering upgrades of existing brownfield refineries, according to The Express Tribune. The change moves duties that previously sat with the Petroleum Division and OGRA over to ISGS. A Petroleum Division letter of August 24, 2026 formalised the appointment and directs ISGS to act for the division and carry out its functions under the policy.

Refineries will be able to sign upgrade agreements with a body chosen by the Petroleum Division, while a project management unit made up of technical and financial specialists will back implementation and monitoring. ISGS would carry out those agreements, open and operate Refinery Upgrade Accounts, track project progress, appoint consultants and auditors, and release incentive payments from those accounts. Petroleum Division sources told the newspaper the goal is to hand ISGS the execution and oversight of a multibillion-dollar upgrade programme.

The report also questions whether ISGS has the technical know-how and institutional strength to handle the wider role. The doubt stems from the financial and technical complexity involved in modernising refineries.