Page 13 - DMEA Week 38

DMEA TRANSPORT DMEA

Israel keen to connect Saudi

to East Med

ISRAEL LOCAL Israeli media last week cited high- of commerce and marketing, Effie Milutin, told
level government sources as saying that the S&P Platts: “The geopolitical risks in the Persian
The talks follow the country was preparing to propose a pipeline Gulf region only increase the attractiveness of
recent peace deal to connect Saudi Arabia with the Eastern the EAPC system.”
signed between Israel Mediterranean. The plan would require a 700-km extension
and the UAE. Speaking to Globes, the sources said that the of the Ashkelon-Eilat pipeline to the Saudi city
proposal would be made to the UAE regarding of Yanbu’ on the Red Sea coast. Yanbu’ also
an onshore oil and distillate pipeline that would serves as the receiving terminal for the massive
connect to infrastructure owned by the Eilat East-West pipeline, which is currently is being
Ashkelon Pipeline Co. (EAPC), allowing for car- upgraded to increase capacity from 5mn barrels
goes to be exported to Europe and North Amer- per day to 7mn bpd.
ica without having to pass through the Strait of State oil firm Saudi Aramco has two joint
Hormuz or the Suez Canal. venture refineries in Yanbu’ – Saudi Aramco
Discussions were reported to have been held Mobil Refinery Co. (SAMREF) and Yanbu Ara-
between EAPC’s top brass and the ministries of mco Sinopec Refining Co. (YASREF) – as well
Defence and Foreign Affairs. its wholly owned Yanbu’ Refinery. These have
The talks follow the recent peace deal signed capacities of 400,000 bpd, 430,000 bpd and
between Israel and the UAE, which noted that 250,000bpd respectively.
energy would be one of the areas of potential Despite the optimism of EAPC, any proposal
co-operation between the two countries. would require the mediation of the UAE and a
Ahead of proposing the move, EAPC softening of its stance towards Israel on the part
recently restyled itself as the Europe Asia Pipe- of Saudi Arabia, which at present appears to be
line Co., while the company’s deputy manager a stretch. ™

REFINING

Edo refinery to expand

tenfold by 2025

NIGERIA AIPCC Energy, a joint venture formed by Nige- saying by Agence Ecofin.
ria’s AFCOM and China’s Peiyang Chemical He went on to say that he expected the pro-
The refinery’s initial Equipment Co. (PCC), has announced plans for ject to help improve economic conditions in Edo
capacity will be 6,000 a 10-fold increase in the processing capacity of its State and elsewhere in Nigeria. The refinery will
bpd. new modular refinery. create well-paying jobs for local residents and
The first phase of the joint venture’s refin- improve domestic fuel suppliers, he asserted.
ery – located in Ologbo, a town in the Ikpoba Okeni did not reveal the cost of the expan-
Okha region of Nigeria’s Edo State – has an sion programme, but AIPCC Energy represent-
initial capacity of 6,000 barrels per day (bpd). atives recently put the cost of raising the plant’s
Representatives of AIPCC Energy said last throughput capacity to 30,000 bpd at around
week, though, that the plant was on track to see $64mn. According to previous reports, the joint
throughput rise to 60,000 bpd by the middle of venture has already spent about $10.2mn on
the decade. building the first phase of the modular refinery.
The additional capacity will put the refinery The facility is due to be commissioned by the end
in a position to cover a large portion of domes- of this month.
tic demand for diesel fuel, said Segun Okeni, The refinery will only handle about 1,000
AIPCC Energy’s head of quality, health and bpd of feedstock when it comes on stream and
safety and community relations. “Some of the then ramp up to 6,000 bpd. Diesel will account
products will be exported to increase foreign for about 55% of output during first-phase oper-
exchange earnings. We will be able to cover over ations, with residual fuel oil (RFO) accounting
80% of Nigeria’s diesel needs. This is the vision for another 38% and naphtha for most of the
we have for the next five years,” he was quoted as remaining 7%. ™

Week 38 24•September•2020 www. NEWSBASE .com P13