Page 11 - Downstream Monitor - MEA Week 34
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DMEA ProjeCts & ComPanies DMEA
Power supply secured for Basra NGL plant
middLe east
STATE-BACKED Basrah gas Co. (BgC) this week signed a deal with Shamara Holding for supplying electricity to the Basrah natural gas Liquids (ngL) plant.
e facility forms part of the South gas Uti- lisation Project (SgUP) on which a nal invest- ment decision (FID) was taken by super-major Royal Dutch Shell in January.
e $17.5bn development is being executed by the Basra gas Co. (BgC) joint venture (JV) of state-owned Basrah Oil Co. (BOC), Shell and Japan’s Mitsubishi, and will treat, process and distribute associated gas from the giant Rumaila, West Qurna 1 and Zubair oil elds.
e latest stage comprises Basrah ngL, cov- ering the installation of the two-train gas-pro- cessing plant at Al-Ratawi in the west of Basra to process an additional 4.1bn cubic metres per year of gas.
According to the statement on the FID, the scheme would entail an increase in production of higher-margin LPg for export, as well as pro- viding feedstock for domestic power plants.
On February 27, BgC signed a contract with
China Petroleum Engineering & Construction Corp. (CPECC) to carry out the work, scheduled for completion in late 2020.
Once the ngL plant is operational and hooked up to the Iraqi gas network, it will feed power stations to generate 1.5 MW or more of electricity, according to BgC managing director Frits Klap. He added: “ e new plant will have two trains that will require around 70 megawatts of electricity to run e ciently.”
In July, the Iraqi Ministry of Oil (MoO) announced a deal with Honeywell and Bechtel that would see the US services rms increase the utilisation of associated gas from ve oil elds in Basra governorate.
In a statement, the MoO said that the addi- tional 600mn cubic feet (17mn cubic metres) per day will come in two stages, with each adding 300 mmcf (8.5 mcm) per day.
Honeywell and Bechtel will work together on the project, which is aimed at reducing gas ar- ing from the oil elds by up to 20%, and signed a joint memorandum of understanding (MoU) with the MoO on July 17.
Shell agrees Qatari lubricant deal
middLe east
SHELL Lubricants signed a deal this week with Qatar Fuel (WOQOD) for the supply of nished premium lubricants.
e deal will see Shell technology applied to WOQOD products to ensure the supply of high-quality lubricants utilising premium out- put from the Pearl gTL gas-to-liquids plant, starting in September.
An o cial announcement said that the sup- plied premium engine oils would be co-branded as WOQOD OTO, adding that these would be available in a variety of packs and applications.
WOQOD managing director and CEO Saad Rashid Al-Muhannadi said: “In 2009 WOQOD signed an agreement with Shell Marine for the exclusive distribution of marine lubricants in Qatarfor15years.”Headdedthatthelatestdeal was a “further extension of that relationship”.
Shell has extensive interests up and down the value chain in Qatar, partnering Qatar Petro- leum (QP) in the pioneering $19bn Pearl gTL project at Ras La an and nurturing the state’s Lng shipping industry.
e latter takes the form of a 25-year master services agreement signed in 2006 with the local Qatar gas Transport Co. (nakilat), entailing operating and then progressively transferring the rm’s eet of Lng carriers.
Qatar Shell’s managing director and chair- man, Andrew Faulkner, said that the deal “reflects WOQOD and Qatar Shell’s shared commitment to the delivery of premium prod- ucts and services”.
Shell has its own gTL technology, in which it has invested more than $1bn and led more than 3,500 patents.
WOQOD has signi cantly expanded its fuel retail coverage in recent years. On March 28, it said that it would open a further 30 fuel stations in 2019, following the 32 it opened in 2018. e completion of those scheduled for 2019 will mean that WOQOD’s network has doubled since 2017.
On August 8, the rm opened its 86th fuel station,sellingLPgcylinders,aswellasgasoline and diesel products.
In July, it signed a deal with Al Meera Con- sumer goods for the management of its growing portfolio of Sidra Convenience Stores, which at the time numbered 65.
In April 2018, QP announced that the for- eign ownership limit (FOL) of subsidiary Qatar Fuel (WOQOD) would be increased from 25% to 49%, with the maximum single shareholder ownership also raised to 1% for the fuel storage, distribution and marketing company.
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