Page 7 - MEOG Week 23

MEOG PIP e LI nes & trans P ort MEOG

Iran to build up

gasoline storage

Iran IRAN is looking to increase its gasoline stor- tehran also wants to expand the output of the
age capacity in response to a slump in demand 420,000 barrel per day (bpd) Persian Gulf star
caused by the coronavirus (COVID-19), and in refinery, raising its gasoline production to 54mn
preparation for an expansion of the Persian Gulf litres per day. The plant runs on condensate sup-
star refinery. plied by the supergiant south Pars gas field.
The country has removed 770,000 barrels of Iran’s south-east region has established
oil from storage at the northern port of Neka to 120mn litres of storage for gasoline produced at
make room for extra gasoline, state news service the refinery, IsNA reported on May 9. A crude oil
shana reported on May 31. The oil was trans- tank in tehran’s Moghanak region has also been
ferred to the tehran oil refinery. Gasoline will be emptied to house 40mn litres more of the fuel.
delivered to the Neka terminals via the Rey-sa- Additional plans are underway to add storage in
ri-Neka pipeline once dredging work has been the sari region in the north.
completed. In other Iranian news, a fire has occurred
Iran has been one of the countries hardest at the 220,000 bpd tehran oil refinery on June
hit by the coronavirus (COVID-19) pandemic, 4, killing one worker and injuring another, the
with the travel restrictions imposed by author- facility’s operator reported.
ities to combat the virus causing fuel demand The fire was caused by a gasoline leak and has
to collapse. Its oil minister said in mid-May that been extinguished. A more serious blaze also
gasoline stockpiles had reached an “unprece- broke out at the same plant in November 2017,
dented historic level,” with consumption having killing eight workers. Refining operations were
slumped to 65mn litres per day from an average halted after the latest incident which took place
of 97mn litres last year. just after midday.™

P o LIC y

Iraq facing a financial crisis and

public service meltdown

IraQ IN the past month Iraq’s new Prime Minister Loss of oil revenue
Mustafa al-Kadhimi had taken several steps to Iraq is the Organisation of the Petroleum
bring some stability and order to his country, but Exporting Countries’ (OPEC) second-biggest
a major challenge lies ahead as the country faces oil producer; its economy relies heavily on the
an economic crisis which could leave millions of revenues of crude oil exports, which represent
Iraqis out of pocket and lead to a fresh outbreak more than 90 per cent of the state’s income.
of unrest. the government needs 12 trillion dinars
the recent sharp decline in oil prices, the ($10bn) to pay the June and July salaries of more
coronavirus pandemic and months of political than four million employees, retirees and ben-
turbulence have left Iraq’s financial situation in eficiaries, as well as cover the expenses of the
turmoil. efforts against the coronavirus and food relief
On the horizon is Baghdad’s inability to for low-income families.
secure the next two months’ salaries for public The oil price collapse brought on by a dispute
sector employees, or pay pensions and benefits, between saudi Arabia and Russia in March sent
a loss of income that would affect the majority of the value of Iraq’s exports plummeting, and over
Iraqi households. April and May they brought in no more than
such an outcome could stoke widespread $3.49bn , about a third of the sum needed.
unrest, threaten the new government and see Although oil prices have begun to recover,
public institutions, including oil fields, targeted with the price of a barrel reaching $42 over the
by angry protesters. past few days, Iraq’s shortfall in revenues casts

Week 23 10•May•2020 www. NEWSBASE .com P7