Page 4 - DMEA Week 10 2022

DMEA COMMENTARY DMEA

Iraq announces plans

for northern refineries

North Refineries Co. has announced ambitious plans to upgrade, expand and add to its
refining slate and while they are unlikely to all be completed, there is reason for optimism.

MIDDLE EAST IRAQ’S state-owned North Refineries Co. refinery. The largest of the projects will see
(NRC) announced this week that it intends to capacity at least doubled at the 140,000 bpd Salah
expand its refining capacity through upgrades al-Din 1 refinery at Baiji, to its previous 280,000
WHAT: to existing facilities and the addition of green- bpd through the overhaul of Salah al-Din 2, but
NRC intends to add field units. this has been on the cards for several years.
around 570,000 barrels The company, which is a subsidiary of the Hussain said that the project is “being referred
per day of refining Iraqi National Oil Co. (INOC), has a nameplate to thousands of specialised international compa-
capacity though no refining capacity of 248,000 barrels per day with nies, as well as a project to reconstruct and reha-
timeline has been set for pre-existing plans already in place to add around bilitate the second [refinery … ] which is under
completing the projects. 370,000 bpd and the latest announcement would preparation for qualification requirements.”
take the company’s anticipated capacity to All located to the north and west of Baghdad,
WHY: around 815,000 bpd. lying either along the road between the capital
The northern refineries Broader plans by NRC’s sister companies and Mosul or that running to Kirkuk, these facil-
suffered most from last Midland Refineries Co. (MRC) and South ities fell into varying states of disrepair following
decade’s IS incursion, Refineries Co. (SRC) are seen eventually adding the 2014 IS incursion, with the militants hold-
having been attacked 900,000 bpd of capacity to take the state’s slate ing or attacking each of the facilities at various
or fallen into severe just under 2.2mn bpd. points over their reign over parts of northern
disrepair. However, with current capabilities running Iraqi territory.
at around a third of that level, and several of the
WHAT NEXT: planned facilities having been on the drawing Greenfield plans
The plans to expand board for a decade or more, hopes of reaching Hussain noted that NRC’s plans also include the
existing facilities appear this target are remote. “establishment of the new Kirkuk investment
to be more achievable refinery with a capacity of 75,000 bpd, which
than the ambitious Upgrades and expansions is under the process of obtaining the approval
development of large, Speaking to the official Iraqi News Agency (INA) of the Kirkuk governorate departments, each
greenfield units. this week, NRC director-general Qassem Hus- according to its competence, for the purpose of
sain said: “There is a plan to establish new refin- direct implementation”.
eries and reconstruct the remaining refineries Meanwhile, he revived talk of an all-but-for-
Hussain said that capacity at the 16,000 bpd gotten greenfield 70,000 bpd facility at Haditha,
Haditha refinery would be expanded to 36,000 noting that the latter project is “under the pro-
bpd through the addition of two new refining cess of obtaining referral and review procedures”.
units, which he said are “under construction, Hussain also provided an update on plans
and it is hoped that they will be completed early for the development of a 70,000 bpd refinery at
next year” following the signature of a contract Qayarah to process heavy crude produced from
with Honeywell UOP in February. the nearby oilfield of the same name, which has a
He specified that the units would be dedicated production capacity of 25,000-30,000 bpd.
to naphtha hydrogenation and improved gaso- He pointed the signing of a contract in Sep-
line production, with the work being “referred to tember 2021 between NRC, Swedish firm SEAB
a specialised international company”. and Limak Holding of Turkey for investment
Hussain continued: “We also intend to estab- to construct the greenfield refinery to replace
lish a project for the fourth refining unit in the Qayarah’s existing facility.
Al-Siniya refinery [20,000 bpd] and the third In January he told INA that the new refinery
refining unit in the Al-Kasak refinery [10,000 was “designed to produce asphalt that conforms
bpd], with a capacity of 10,000 bpd each, which to standard specifications, as well as to produce
is under preparation for the technical study”. heavy gas oil, a mixture of light gas oil and naph-
Meanwhile, he added that new naphtha thalene,” which are supplied via the Oil Products
hydrogenation and improved gasoline pro- Distribution Co. (OPDC) to state and private
duction units would allow for a 12,000 bpd sector companies.
expansion in capacity at the 56,000 bpd Kirkuk The value of the project has not yet been

P4 www. NEWSBASE .com Week 10 10•March•2022