Page 16 - DMEA Week 35

DMEA PETROCHEMICALS DMEA

Iraq to speed up $8bn Nibras

petrochems project

IRAQ IRAQ is looking to fast-track plans for the $8bn we decided to sign the final contract with Shell
Nibras petrochemicals complex it wants to before the end of this year,” Ismail said.
The project will be one develop with Royal Dutch Shell, Iraqi Oil Minis- Nibras will have a production capacity of
of the largest of its kind ter Ihsan Ismail said on August 31. 1.8mn tonnes per year (tpy) of polyethylene,
in the Middle East and The project, one of the largest of its kind in the using ethane as its feedstock. Construction is
North Africa. Middle East and North Africa, will be sited at the expected to take five or six years to complete at a
southern port of Basra. It was first proposed in cost of almost $8bn.
2012, but has struggled with challenges affect- The complex will generate $90bn in profits
ing many downstream ventures in Iraq, such during its 35-year operational period, establish-
as financing difficulties, security concerns and ing Iraq as a major petrochemicals player.
political wrangling. Iraq and Shell signed a memorandum of
However, the government intends to sign a understanding (MoU) on Nibras eight years ago
final agreement with Shell on the investment by but the project was held up by funding shortages
the end of the year, Ismail said. Shell will stake and conflict. The Anglo-Dutch major’s main
a 49% interest in Nibras, while the Iraqi oil and current asset in Iraq is a 44% interest in the Basra
industry ministries will each take 25% stakes. Gas Co. which captures associated gas from oil-
“After a series of meetings with Shell repre- fields in Iraq’s south to produce electricity. The
sentatives over the past days, we agreed to accel- state-run South Gas Co. has a 51% interest in the
erate measures to launch this strategic project ... enterprise, while Japan’s Mitsubishi has 5%. ™

LyondellBasell selected for Duqm

petchem tech

OMAN KUWAIT and Oman have selected Dutch-based phase in 2021. It has awarded a total of 12 tech-
LyondellBasell to provide petrochemical pro- nology packages as it pushes ahead with front-
LyondellBasell will duction technologies for the refining complex end engineering work.
supply proprietary they are building in Oman’s southern port of “Due to the increasing global demand for pet-
polyethylene and Duqm. rochemical products, the DRPIC petrochemical
polypropylene LyondellBasell will supply its Spheripol project will become a significant player in the
technologies. technology for a planned 280,000 tonne per region, benefiting from its strategic location on
year polypropylene (PP) plant at the site, and the Oman eastern sea board with direct access
its Hostalen ACP technology for a 480,000 tpy to international markets,” DRPIC CEO Salim Al
polyethylene facility. The contract was awarded Huthaili said.
by project developer Duqm Refinery and Pet- Duqm is the largest of a number of planned
rochemical Industries (DRPIC), a joint venture downstream investments in Oman.
between Oman’s OQ and Kuwait Petroleum. Private developer Sohar Asphalt announced
“LyondellBasell’s market leadership in pol- on August 30 it had hired China Chemical Hualu
ymer process technologies is once again con- Engineering (CCHEC) to build Oman’s first
firmed with this significant award by DRPIC,” bitumen refinery. It will be erected at the north-
the company’s director of licensing, Neil Nada- ern port of Sohar, next to OQ’s existing Sohar
lin, said in a statement last week. refinery, at a cost of $400mn.
Work on the 230,000 barrel per day (bpd) The plant will use up to 30,000 bpd of heavy
Duqm refinery is already well underway, with crude oil, supplied by carriers, to produce 1mn
completion expected next year. It will be Oman’s tpy of bitumen, as well as 600,000 tpy of naphtha,
largest oil processing plant, producing fuels for straight-run distillates and vacuum gas oil. First
export. production is expected in 2023.
DRPIC expects to take a final investment Oman is currently reliant on imports of bitu-
decision (FID) on the project’s petrochemicals men, primarily used for road construction. ™

P16 www. NEWSBASE .com Week 35 03•September•2020