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MEOG PROJECTS & COMPANIES MEOG
Iraq, Kuwait make progress
on refining projects
IRAQ/KUWAIT 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
of a fluid catalytic cracking (FCC) at the 210,000 to make up for damage to its largest plant near
barrel per day (bpd) Basrah refinery in southern Baghdad, which was captured by Islamic State
Iraq. militants (Daesh) in 2014 and reclaimed the fol-
The plant, boasting a capacity of 55,000 bpd, lowing year.
will produce a mix of LPG, gasoline, naphtha Iraq is now contending with a serious eco-
and gasoil. Ground-breaking should take place nomic crisis, meaning such plans are now on the
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.
Week 31 05•August•2020 www. NEWSBASE .com P9
