Page 11 - DMEA Week 40 2021
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DMEA SUPPLY DMEA
Algeria’s spat with Morocco
threatens gas supplies to Spain
AFRICA BOTH Algeria and Morocco can lose econom- cubic metres of natural gas annually that it
ically if negotiations between them to renew a receives on favourable terms, while simultane-
natural gas transit deal does not reach a satisfac- ously depriving Algeria of a much needed forex
tory conclusion by the end of October. earnings, even if it is able to reroute some of the
The deal in question was reached in 1996 lost natural gas exports via the alternative Med-
to pump several billion cubic metres of Alge- gaz pipeline that stretches directly from Algeria
rian natural gas to Spain and Portugal via the to Spain.
Gaz-Maghreb-Europe (GME) pipeline that Algeria and Morocco have been caught in
goes through Morocco, and remained in place a diplomatic spat following the recognition of
ever since. Moroccan sovereignty over the Western Sahara
On Thursday, 30 September 30, Spain’s For- by the United States as a reward for Morocco’s
eign Minister Jose Manuel Albares reportedly recognition of the State of Israel, leading to the
flew to Algeria to discuss the possible disruption breakdown of diplomatic relations between
to gas supplies from the north African country at Algiers and Rabat.
a time when natural gas shortages in Spain have Algeria, which has hosted the Polisario inde-
raised prices for retail and industrial users. pendence movement for the Western Sahara in
Failure to sign a new gas transit deal through the past, has been accusing Morocco of hostile
the GME in time will deprive Morocco of 1bn actions ever since.
REFINING
Developers provide
update on Karbala refinery
MIDDLE EAST THE South Korean consortium led by Hyundai this summer”.
Engineering & Construction developing Iraq’s Meanwhile, deputy Oil Minister Hamid You-
Karbala refinery this week provided an update nis said at the time: “The ministry [is keen] to
on the project, which is nearing completion. accelerate the development of the refinery sec-
During a meeting with Oil Minister Ihsan tor in Iraq by building modern refineries and
Abdul-Jabbar in Baghdad, the consortium’s introducing new units for the current refineries.”
management committee said that despite delays He added that the country would experience a
caused by a halt to works imposed by the coro- “qualitative increase in the production of oil
navirus (COVID-19) pandemic, the facility has derivatives”
surpassed 92% completion, with commissioning The refinery will comprise 35 operational and
anticipated in September 2022. service units, including four gasoline production
The 140,000 barrel per day (bpd) refinery units, a thermal cracking unit, a poly-naphtha
is seen enabling Iraq to significantly reduce its unit to produce octane 95 and 90 fuels as well as
refined product imports when it comes into 44 storage tanks. Gasoline-producing units have
operation. already been completed
The announcement follows a statement by It is expected to produce LPG, gasoline, gas
Abdul-Jabbar in May that said construction was oil, fuel oil, jet fuel and asphalt to meet interna-
90% complete. “Unless the rate of progress is tional standards.
increased, the September 2022 target is unlikely Plans to develop a greenfield refinery at Kar-
to be met, with early 2023 appearing more likely,” bala have been on the drawing board since 2007,
Ian Simm, principal advisor at consultancy IGM when Baghdad launched a downstream devel-
Energy, told Downstream MEA (DMEA). opment programme comprising four new plants
In late August, trials began on power gen- across the country.
eration systems at Karbala, with Abdul-Jabbar Of these, only Karbala has reached the con-
instructing “the refinery’s management to expe- struction phase following the MoO’s reversion to
dite the completion of the technical measures an engineering, procurement and construction
required to supply the province’s electric power (EPC) contract and its award to the Korean con-
system with a generative capacity of 200 MW sortium in 2014.
Week 40 07•October•2021 www. NEWSBASE .com P11
