Page 12 - DMEA Week 28 2021

DMEA REFINING DMEA

Iraq continues refinery

awards with Fao deal

MIDDLE EAST IRAQ’S Ministry of Oil (MoO) this week DMEA understands that that the local Amira
announced the award of a contract to China Group was among several companies to have
National Chemical Engineering Co. (CNCEC) expressed an interest in working on the Fao facil-
for the construction of a major refinery and pet- ity, but following several failed initiatives with
rochemical complex south-east of Basra. small and relatively unknown players, Baghdad
The Chinese company will build the project, is keen to attract household names.
which comprises a 300,000 barrel per day (bpd) Meanwhile, earlier this month the MoO
refinery and a petrochemical complex on the chose the al-Awsat Energy consortium – com-
al-Fao Peninsula. Downstream MEA (DMEA) prising Norinco, PowerChina, China Nuclear
understands from sources within the MoO that Engineering & Construction (CNEC) and
the refinery will be built at a cost of $6bn, with an unnamed Emirati company – to develop a
the petchems facility costing an additional $12bn 100,000 bpd refinery in the southern Dhi Qar
and likely to be constructed at a later stage. Governorate.
While statements from the ministry lacked The facility will include units for hydrogena-
detail, the development of the downstream tion, benzene improvement, isomerisation, fluid
facilities is understood to be carried out under a catalytic cracking (FCC), continuous catalytic
build-operate-transfer (BOT) or build-own-op- reforming (CCR) and asphalt production as well
erate-transfer (BOOT) contract. as an electric power production unit, and will be
The announcement comes three and a half configured to produce Euro 5 specification fuels.
years after a contract for the construction of Baghdad appears to be making good on
the refinery was awarded to state-owned firms promises to build out the country’s refining sec-
China North Industries Group Corporation Ltd tor and has plans to cut the government’s gaso-
(Norinco), Power Construction Corporation of line import bill by up to 50% by the end of the
China (PowerChina), with that award having year as part of a wider effort to end imports of
failed to lead to any progress. the fuel by 2023.™

P12 www. NEWSBASE .com Week 28 15•July•2021