Page 10 - DMEA Week 19 2022

DMEA REFINING DMEA

Study completed for private refinery at Duqm

MIDDLE EAST CANADIAN firm Genoil announced this week procurement and construction (EPC) contrac-
that it has completed a “bankable feasibility tor covering the construction of storage tank
study” for the development of a private 200,000 farms, the export terminal and other required
barrel per day (bpd) upgrading refinery at the infrastructure such as pipelines. The Chinese
Omani port of Duqm. firm and its parent will also operate the refinery
The company was awarded a contract in June once it is commissioned.
2021 by Ras Madrakah Petroleum Co. and Bei- SEZAD is also home to a 230,000 bpd facil-
jing Petrochemical Engineering Co., a subsidi- ity under development by OQ8, a 50:50 joint
ary of Yanchang Petroleum International Ltd, to venture between Oman’s state-owned OQ and
build the greenfield refinery, which is expected Kuwait Petroleum International (KPI).
to cost around $2.4bn. The $8bn facility is anticipated to be launched
Genoil said that following the completion of in early 2023. In December Saudi Aramco’s trad-
the study, it would proceed with the construc- ing arm agreed with OQ to explore the poten-
tion of the facility, with 8 square km of land allo- tial for providing feedstock for the unit and the
cated for the unit in the Special Economic Zone petchem complex and store oil at a new facility
Authority of Duqm (SEZAD). nearby.
A statement to press said that a gas supply “The parties will undertake a joint review
arrangement is in place with the Omani govern- of ATC supplying feedstock to Duqm Refinery
ment, with three crude feedstock agreements in & Petrochemicals Industries Company LLC
place covering up to the 200,000 bpd feedstock (OQ8), as well as possible offtake of oil products
requirement. Genoil added that three offtake by ATC from OQ8.”
agreements have been signed for offtake of According to the original plan, 65% of the
refined products. feedstock will be provided by Kuwait, with local
Ras Madrakah holds the only private refinery production providing the balance. When it
licence ever granted by the Muscat and Genoil comes into operation, the refinery will produce
said that the project “has received strong local diesel, jet fuel, naphtha and LPG, and will feature
support”. units for hydrocracking, hydrotreating, delayed
The refinery will leverage the proprietary coking, sulphur recovery, hydrogen generation
Genoil Upgrading Technology (GHU) and cat- and Merox treating.
alysts, with the Canadian firm also licensing its Meanwhile, it will use up to 30,000 bpd of
process design package, training, advisory ser- heavy crude oil to produce 1mn tpy of bitumen,
vices and equipment supply. as well as 600,000 tpy of naphtha, distillates and
Beijing Petrochemical was hired to carry vacuum gas oil. It will initially be dedicated to
out the feasibility study, front-end engineering processing crude oil from the tanks at the nearby
design (FEED) and project management work, Ras Markaz storage facility, which is being devel-
as well as acting as the project’s engineering, oped to the south.™

P10 www. NEWSBASE .com Week 19 12•May•2022