Page 14 - DMEA Week 30

DMEA REFINING DMEA

Iraq, Kuwait make progress on

refining projects

IRAQ IRAQ has awarded a $4bn contract to a Japanese pandemic, Iraq was intending to build several
engineering firm called JCG for the construction new refineries across the country. This was partly
Iraq has awarded a of a fluid catalytic cracking (FCC) at the 210,000 to make up for damage to its largest plant near
$4bn contract for a barrel per day (bpd) Basrah refinery in southern Baghdad, which was captured by Islamic State
cracker, while Kuwait’s Iraq. militants (Daesh) in 2014 and reclaimed the fol-
KIPIC has begun The plant, boasting a capacity of 55,000 bpd, lowing year.
operating a pipeline will produce a mix of LPG, gasoline, naphtha Iraq is now contending with a serious eco-
to supply a new plant and gasoil. Ground-breaking should take place nomic crisis, meaning such plans are now on the
with gas. in 2021, with construction running for four shelf.
years, the director-general of the state-owned Over the border in Kuwait, state-owned
South Refineries (SRC), Husam Hussein Weli, Kuwait Integrated Petroleum Industries (KIPIC)
said in a statement. is meanwhile making progress on its long-de-
Japan dispensed a JPY110bn ($1.05bn) loan layed Al-Zour refining project. It has begun
last year to fund the FCC project, along with var- operating a pipeline that will supply the facility
ious other financial assistance it has extended to with gas, state news agency Kuna said on July 28.
the country. Al-Zour, which has been planned for over a
The Iraqi oil ministry’s goal is to raise the decade, is set to become Kuwait’s largest refin-
capacity of the Basrah refinery to 280,000 bpd, ery with a throughput capacity of 615,000 bpd.
by upgrading a gasoline unit and adding a crude Its launch will bring overall refining capacity to
distillation unit (CDU). But work is running above 1.5mn bpd. Kuwait is also modernising its
behind schedule, while Iraqi fuel demand con- existing oil refineries, as part of plans to produce
tinues to climb. more light fuels such as diesel and kerosene that
Before the coronavirus (COVID-19) can be exported. ™

UK firm to build biodiesel

plant in Oman

OMAN UK-BASED biodiesel technology and equip- diversification.
ment supplier Green Fuels has broken ground The project, backed by state support initia-
Green Fuels is working on a 7,000 tonne per year biodiesel plant in tives, is due to produce its first diesel in the sec-
on the project with Oman’s Khazaen economic city. ond quarter of 2021.
Protostar Group. The facility will initially produce biodiesel Oman’s government is looking at various
using cooking oils, but will start manufactur- ways of decarbonising its economy, and the use
ing jet fuel as well within four to five years of its of biodiesel in both power generation and also
launch. The bulk of its output will serve as feed- transport is seen as a low-cost means of achiev-
stock for remote power generation, replacing ing emissions reductions. However, at the same
some fossil fuel-based diesel. time Oman is also building new large-scale con-
Green Fuels is working on the project with ventional refineries, including a 230,000 barrel
its partner Protostar Group, through a joint per day (bpd) plant at the port of Duqm. The
venture called Wakud International. The pair Oman-Kuwait joint venture is due to come on
signed a lease earlier this month for land to stream in 2021.
build the plant. Wakud said at the time it was Recently a Canadian investor also said it was
striving to become a regional leader in biofuels intending to invest in a 300,000 bpd plant in the
production, noting that the project at Khazaen country, designed to provide low-sulphur fuel
would contribute towards Oman’s economic oil for ships in the area. ™

P14 www. NEWSBASE .com Week 30 30•July•2020