Page 17 - DMEA Week 24

DMEA NEWS IN BRIEF DMEA

Egypt approves $40mn 227,000 barrel per day (bpd) Izmir refinery to parks are going to be constructed in Ilam and
Chaharmahal-Bakhtiari provinces.
the end of July, according to Argus.
loan for increased refining part of a wider shutdown at the refinery and in Chaharmahal-Bakhtiari province while the
The base oils unit shut down on May 5 as
As reported, two parks are set to be built
efficiency had been due to restart on 1 July. other one is based near Ilam.
These parks will also have different areas
Tupras will not offer any base oils, wax or
Egypt’s lower house of parliament has extracts from inventory during July because for producing a variety of petrochemical
approved an extra $50mn in financing from it has sold out. Customers have been on products including laminate sheets, paint,
the European Bank for Reconstruction allocation for SN 150, SN 500 and bright stock leather, synthetic leather, paper industries in
and Development (EBRD) to fund energy from the second half of May. There has been seven areas, melamine, chemical fertilizers,
efficiency upgrades at refineries owned by no availability of SN 100 base oil, slack wax or and plastic industries, etc.
Suez Oil Processing Co. (SOPC). heavy extract since the halt. The construction of petrochemical
The financing agreement was first signed The stoppage in early May was in response parks is considered complementary of the
last November, building on a $200mn loan to brimming inventories at the Izmir refinery petrochemical industry’s value chain and
for downstream improvements provided and a collapse in oil product demand caused can prevent the sale of raw materials and the
earlier that year. Not only the funding go by the Covid-19 pandemic. import of similar products, thus preventing
towards increasing efficiency, but it will also Tupras’ output has been intermittent this the outflow of revenue from the country.
help SOPC produce cleaner fuels. year. The company halted base oils production Petrochemical industry plays a crucial
Rania Al-Mashat, Egypt’s minister during January and February to focus on role in Iran’s non-oil economy, as the
for international cooperation, said the reducing inventories. Its stocks had risen after petrochemical export is the second largest
deal would help Egypt transform itself it maintained high domestic prices. This made source of revenue for the country after crude
into a regional energy hub, create jobs imports much more competitive, and buyers oil. Petrochemical exports already constitute
and improve the environment. It also covered their requirements with these supplies nearly 33 percent of the country’s non-oil
contributes to achieving four of the UN’s instead. exports.
sustainable development goals (SDGs). The refinery’s base oils output was just Iran has been highly developing this sector
7,060 tonnes in the first quarter, down from over the recent years as the development of
27,940 tonnes during the fourth quarter of last the giant South Pars gas field (Iran shares with
Bahrain Petroleum to only year. Tupras began ramping up production Qatar in the Persian Gulf) has been supplying
of oil products at its Izmit, Kirikkale and
more feedstock to the petrochemical units.
cut expat jobs Batman refineries in June. There is no base has encouraged more development of the
Also, the U.S. sanctioning Iran’s oil exports
oils production at these refineries.
A decision to dismiss several Bapco staff due petrochemical industry to boost exports from
to the economic impact of Covid-19 will this sector.
not affect any Bahraini employee, Bahrain Over $1b invested to build 4 The country has also been developing
Petroleum Company (Bapco) reiterated on the industry’s downstream sector in order
June 17. petchem parks across Iran: to promote the production of products with
Bahrainisation is one of the company’s more added-value.
key strategies with focus on training and IPPG In this regard construction of
development, it said. petrochemical parks, petro-refineries
The company seeks to boost Bahrainisation Managing Director of Iranian Investment alongside the development of the country’s
rates through training and replacement of Petrochemical Group (IIPG) says nearly current petrochemical complexes is highly
expatriates with locals, it added. IRR44 trillion (about $1.04bn) has been pursued by the oil ministry and especially the
This came as Bapco Workers Union held invested to construct four petrochemical National Petrochemical Company (NPC).
a meeting with the management on Tuesday parks across the country.
to discuss an internal memo issued to all staff “The construction of these four
by Bapco chairman and CEO Dawood Nassif petrochemical parks would create more than Tradex starts building 1st
concerning dismissal of several employees. 12,000 direct jobs and the average return
The termination decision applies only to rate of the projects is about 30%,” Rasoul filling station in Equatorial
expatriate staff whose contracts have expired Ashrafzadeh told IRNA.
and not renewed, the management stressed. According to the official, the first park is Guinea
going to be established in Urumieh city in
West Azarbaijan Province with IRR7.5 trillion subsidiary of the Cameroonian fuel
Izmir base oils plant to (about $178.5mn) of investment. operator Tradex, Tradex Guinea Equatorial,
This petrochemical park will create direct
commenced work on its very first fuel service
extend shutdown until end- job opportunities for 940 people, while station in Malabo, the capital of Equatorial
offering 2,900 indirect jobs, the official said.
Guinea.
July including resin making, melamine sheets, delivered in October 2020 will have a storage
The station, which is scheduled to be
“The park will be built to work on six areas,
Turkey’s sole base oils and wax producer laminate flooring, MDF, HDF and parquet,” capacity of 100,000 liters of fuel (super and
Tupras will extend the closure of a 400,000 he added. gasoil) and 300 12.5 kg cylinders of butane
tonne per year (tpy) Group I unit at its The official further noted that three other gas.

Week 24 18•June•2020 www. NEWSBASE .com P17