Super Petrochemical accused of trying to build a refinery without approval

Super Petrochemical PLC (SPCL) has been accused of trying to operate beyond its approval, taking advantage of instability in the fuel market. The company's activities and its efforts to obtain a new licence have drawn discussion and criticism in the energy sector.

Super Petrochemical has been in business since 2013 under a licence to operate a condensate fractionation plant. It is alleged that the company has recently gone beyond the limits of its approved activities and tried to set up a crude oil refinery without prior approval.

The Energy and Mineral Resources Division has directly rejected the company's application to import crude oil. Even so, SPCL is accused of continuing to lobby in various quarters to obtain a new licence or approval.

Pointing to the legal position, those concerned note that SPCL is licensed only to process gas-field or imported condensate. Under clauses 1.1 and 1.4 of the Condensate Fractionation Plant Policy, 2014, this licence offers no scope whatsoever to set up or expand a crude oil refinery.

Under clause 8(e) of the same policy, refined products produced at such a plant may not be sold directly on the open market. According to those raising the allegations, granting a new major project or a refinery approval to a company accused from the start of trying to sell products on the open market would go against policy.

Under the Private Refinery Establishment Policy 2023, policy-level and final approval from the Energy and Mineral Resources Division is mandatory before building infrastructure or importing machinery for a refinery. SPCL is alleged to have brought in refinery infrastructure and machinery without any such permission.

Under clauses 7 and 7.1 of the same policy, no one may import crude oil without a valid refinery licence. There is no legal scope to import crude oil using an old fractionation plant licence.

Under clause 3.2.15 and Appendix 7 of the National Industrial Policy, a crude oil refinery is a highly sensitive industry kept under strict government control. An no-objection certificate from the relevant ministry is mandatory before any investment or machinery import in this sector. As it is a controlled sector, neither BIDA nor any other agency has the legal authority to permit machinery imports for it without the Energy Division's permission.

Under the Customs Act, 2023 and the Import and Export (Control) Act, 1950, importing a controlled product without prior approval is completely prohibited. Importing crude refinery machinery while declaring it as general industrial or fractionation plant equipment amounts to a false declaration under customs law and is a punishable offence; such goods are liable to confiscation in favour of the state, and those involved can face imprisonment and fines in criminal cases.

An Energy Division letter dated 16 November 2025 is said to have clearly rejected SPCL's application. Experts on the subject say the company's activities are not lawful and that the correct course is to stop them and take action under the law.