Page 5 - DMEA Week 27 2022

DMEA COMMENTARY DMEA

inaugurated in April 2017, with the first ship- and useable capacity is at least 150,000 bpd lower.
ment of gasoline delivered for distribution two IGM Energy provides a figure of 768,000
months later. Phase 2 began producing Euro-V bpd, spread across the three refining affiliates of
gasoline shortly after its own official launch in the Iraqi National Oil Co. (INOC). “By our esti-
February 2018 and was running at full capacity mates, North Refineries Co. (NRC) has a current
by June that year. The third phase was inaugu- capacity of 268,000 bpd, Midland Refineries Co.
rated in October 2019, although it had already (MRC) has 220,000 bpd and South Refineries
been operational for several months and the Co. (SRC) has 280,000 bpd,” the note explains.
PGSR has since been expanded to 400,000 bpd, “However, each of these has plans for expan-
with another 50,000 bpd still to come. sion – NRC is looking to add 575,000 bpd of
The two largest crude oil refineries are capacity, MRC 380,000 bpd and SRC a highly
Abadan (360,000 bpd) and Bandar Abbas ambitious 920,000 bpd,” the consultancy added.
(320,000 bpd).
NIORDC and its parent firm the National Issues elsewhere
Iranian Oil Co. (NIOC) are planning a major Replying to questions from Downstream MEA,
downstream expansion, with various greenfield IGM Energy said: “The OPEC data is interesting,
plants and brownfield upgrade projects seen as it appears to indicate where the member states
adding 1.77mn bpd of oil and 65,000 bpd of expect their capacities to be. However, in several
condensate refining capacity. However, with Oil cases, the figures reported are clearly not active.”
Minister Javad Owji suggesting that each incre- It added: “Nigeria is perhaps the clearest
ment of 100,000 bpd could cost as much as $3bn, example. Capacity is quoted at 486,000 bpd, but
such a target is highly unlikely to be reached. In while major work to overhaul 210,000 bpd of
February, perhaps more realistically, he said that state refining capacity is in train – to be followed
refining capacity could rise by around 200,000 by a further 235,000 bpd – active capacity is lim-
bpd within two or three years. ited to 16,000 bpd from three privately owned
modular units.”
Iraq While the data presented appears to be on
There discrepancy is much more significant in the optimistic side, there is plenty to be posi-
the Iraqi figures. OPEC suggests that including tive about in OPEC refining, highlighted by the
two units in the Kurdistan Region – 200,000 bpd recent launch of Kuwait’s 615,000 bpd Al-Zour
total – Iraq’s refining capacity was 1.116mn bpd, facility, the impending start-up of the private,
up from 828,000 bpd in 2020. 650,000 bpd Dangote Oil Refinery in Nigeria
This would give Federal Iraq a total capacity and progress towards the addition of around
of 916,000 bpd; however, again this appears to be 170,000 bpd of capacity in Angola in the near
predicated on the ultimate processing capacity term. As the producer group has significantly
of each of the refineries, regardless of condition. increased upstream production, it will soon be
While Iraq has made significant progress in able to exert even greater control in commodity
the last 18 months towards the rehabilitation, markets as its reach continues to extend down
upgrade and expansion of its refineries, active the value chain.™

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