Page 11 - DMEA Week 19 2022
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DMEA                                           REFINING                                               DMEA


       Basra refinery upgrade on




       track for 2025 completion




        MIDDLE EAST      IRAQ’S Ministry of Planning has said that a  $19mn for engineering services.
                         project to upgrade and expand the 210,000 bar-  It added: “the project to construct Iraq’s first-
                         rel per day (bpd) Basra oil refinery located at  ever FCC complex will unleash the potential
                         Shuaiba is proceeding on schedule.   of Iraq’s refining sector to produce the larger
                           Speaking to Zawya Projects, Abdul-Zahra  volume of the high-value outputs, promote the
                         Al-Hindawi, a spokesperson for the ministry,  transfer of refining technologies from Japan and
                         said that the project, which began in February  help save valuable foreign currencies [needed] to
                         last year, would be completed during 2025 hav-  import huge amount of fuels”.
                         ing secured Japanese export credit in Q3 2021.  The latest expansion follows successful com-
                           The Basra Refinery Upgrading Project  pletion in January 2020 of a project to expand the
                         (BRUP) will expand capacity at the facility,  Shuaiba facility from 140,000 bpd by Czech firm
                         operated by the state-owned South Refineries  Technoexport under an EPC contract awarded
                         Co. (SRC), to 280,000 bpd, below the earlier  in 2015, which also covered increasing the out-
                         Ministry of Oil (MoO) estimate of 300,000 bpd.  put of higher-quality fuels.
                           In August, Japan and Iraq formalised a previ-  Technoexport completed the installation of
                         ous agreement to provide a low-interest $300mn  a crude distillation unit at the facility in 2013
                         loan for the project.                and of a catalytic reformer in 2007, and has also
                           Funding is provided by the Japan Interna-  worked on several projects at the Daura refinery
                         tional Cooperation Agency (JICA) and follows  near Baghdad and for NRC – the operator of the
                         a mid-2019 agreement with Iraq’s Ministry of  beleaguered Baiji refinery.
                         Finance for a $1bn loan to upgrade the refinery,   BRUP forms part of wider efforts by SRC to
                         which was built in the 1970s.        more than quadruple its refining capacity from
                           In October 2020, Japan’s JGC was awarded  270,000 bpd at present to 1.19mn bpd, plans
                         a $3.75bn engineering, procurement and con-  which include the development of greenfield
                         struction (EPC) to to build a new fluid catalytic  units in Nassiriyah, Missan and Dhi Qar.
                         cracking (FCC) complex on land adjacent to the   Iraq has a current refining slate of around
                         existing refinery at Shuaiba.        728,000 bpd, and Baghdad intends to raise this
                           At that point, JICA said it had concluded  to more than 2.5mn bpd, though several of the
                         three loans for the project – a first tranche of  projects discussed have been in planning for a
                         $379mn, a second tranche of $994mn and  decade with very little progress.™
                         Operator         Refinery     Current Capacity (bpd)  Capacity Addition (bpd)  Total (bpd)  Iraq’s current and
                         North Refineries Co.  Salah al-Din (Baiji)  140,000       150,000  290,000  planned refining
                         North Refineries Co.  Siniya             20,000           10,000   30,000  projects.
                         North Refineries Co.  Kirkuk             56,000           12,000   68,000
                         North Refineries Co.  Kirkuk (New)                        75,000   75,000
                         North Refineries Co.  Kasak              10,000           10,000   20,000  Source: IGM Energy
                         North Refineries Co.  Haditha            16,000           20,000   36,000
                         North Refineries Co.  Haditha (New)                       70,000   70,000
                         North Refineries Co.  Qayarah             6,000                    6,000
                         North Refineries Co.  Qayarah (New)                       70,000   70,000
                         North Refineries Co.  Anbar (New)                         150,000  150,000
                         Total NRC                                248,000          567,000  815,000
                         Midland Refineries Co.  Daura            140,000                  140,000
                         Midland Refineries Co.  Wasit                             100,000  100,000
                         Midland Refineries Co.  Karbala                           140,000  140,000
                         Midland Refineries Co.  Samawa           30,000                    30,000
                         Midland Refineries Co.  Samawa (New)                      70,000   70,000
                         Midland Refineries Co.  Najaf            30,000                    30,000
                         Midland Refineries Co.  Diwaniyah        10,000                    10,000
                         Midland Refineries Co.  Diwaniyah (New)                   70,000   70,000
                         Total MRC                                210,000          380,000  590,000
                         South Refineries Co.  Shuaiba            210,000          70,000  280,000
                         South Refineries Co.  Nassiriyah         30,000                    30,000
                         South Refineries Co.  Nassiriyah (New)                    300,000  300,000
                         South Refineries Co.  Missan             30,000                    30,000
                         South Refineries Co.  Missan (New)                        150,000  150,000
                         South Refineries Co.  Fao (New)                           300,000  300,000
                         South Refineries Co.  Dhi Qar (New)                       100,000  100,000
                         Total SRC                                270,000          920,000  1,190,000
                         Total                                    728,000        1,867,000  2,595,000


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