Page 10 - DMEA Week 29 2021

DMEA REFINING DMEA

China to provide

finance for Fao refinery

MIDDLE EAST OIL Minister Ihsan Abdul-Jabbar has disclosed project, he said that CNCEC’s contract includes
that Iraq’s recent award of a contract to a Chi- construction of the refinery, technology transfer,
nese company for the construction of a major operation, training and maintenance as well as a
new refinery followed receipt of guarantees to vague mention of clean energy.
finance the project. The Oil Minister said that the complex will
Speaking to the state-run Al-Sabah daily, produce oil derivatives, plastics and condensates,
Abdul Jabbar said that China’s State-owned employing around 10,000 workers.
Assets Supervision and Administration Com- The award to CNCEC three and a half years
mission (SASAC) had given assurances that it after a contract for the construction of the refin-
would provide the requisite funds for the devel- ery was awarded to state-owned firms China
opment of the 300,000-barrel-per-day (bpd) oil North Industries Group Corporation Ltd
refinery and petrochemical facility on the al-Fao (Norinco), Power Construction Corporation
Peninsula southeast of Basra. of China (PowerChina), with that award having
His comments follow the announcement last failed to lead to any progress.
week that state-owned China National Chemi- However, earlier this month the MoO chose
cal Engineering Co. (CNCEC) would construct the al-Awsat Energy consortium – comprising
the facility under a build-own-operate-transfer Norinco, PowerChina, China Nuclear Engineer-
(BOOT) contract model. ing & Construction (CNEC) and an unnamed
Sources within the Ministry of Oil (MoO) Emirati company – to develop a 100,000-bpd
told Downstream MEA (DMEA) would cost refinery in the southern Dhi Qar Governorate.
$6bn for the refinery and up to $12bn for the The facility will include units for hydrogena-
petchems unit which will be developed at a later tion, benzene improvement, isomerisation, fluid
stage. catalytic cracking (FCC), continuous catalytic
Abdul Jabbar said: “We awarded this pro- reforming (CCR) and asphalt production as well
ject to CNCEC after receiving guarantees from as an electric power production unit, and will
SASAC to provide full funding.” be configured to produce Euro 5 specification
Noting that work will soon begin on the fuels.™

Fao Peninsula

P10 www. NEWSBASE .com Week 29 22•July•2021