Page 14 - AfrOil Week 08 2021

AfrOil PROJECTS & COMPANIES AfrOil

He added: “This capacity could be increased if also located in Pointe Noire, is currently the
needed.” country’s only existing refinery. The facility,
There has been inconsistency in reporting on which was built in 1982, has a throughput capac-
the size of the planned unit. But the total antici- ity of 20,000 bpd, but NewsBase understands
pated cost is $600mn, which is broadly consist- from its state oil firm operator SNPC that the
ent with expected costs for a 50,000 bpd plant. refinery is currently only capable of processing
To date, the Congolese government has refused 18,442 bpd and actual utilisation is more like
to comment on its share of costs. 12,000 bpd. Turnaround maintenance (TAM)
In the first core refining phase, a 50,000 bpd is due to be carried out at the unit this year.
unit will be constructed to run on Congo (Braz- Congo (Brazzaville) produces around
zaville) Djeno Light crude. An optional second 205,000 bpd of crude, with demand is estimated
full-conversion phase, seen kicking off in late at around 25,000 bpd. Product shortfalls have
2022, would more than double throughput to been both problematic and costly for Brazzaville.
around 110,000 bpd, running on heavier crude During the launch ceremony, Congolese
grades and targeting export markets. hydrocarbons minister Jean-Marc Thystère
According to senior BFDI official Sen Shao, Tchicaya said: “The refinery will produce auto-
the “refinery will be able to come into operation motive and aviation gasoline, LPG, diesel, lubri-
by 2023”, noting that it would meet increas- cants, bitumen, kerosene and other products.”
ing demand domestically and from Congo’s He added that the new unit was “an impor-
neighbours. tant link in the diversification of the economy in
The Congolaise de Raffinage (CORAF) unit, the hydrocarbons sector.” ™

Eni restarts Damietta LNG plant in Egypt

EGYPT ITALY’S Eni announced this week that the first authorisations and that its final closing was
cargo since 2012 from the Damietta LNG plant anticipated in the first half of March. A previ-
in Egypt had been produced and lifted. ous deal to resolve the dispute and restart LNG
This comes after Eni signed agreements exports fell apart in April 2020 when conditions
with the Egyptian government, Egyptian Gen- attached to it were not met.
eral Petroleum Corp. (EGPC), the Egyptian The Damietta plant has a capacity of 5mn
Natural Gas Holding Co. (EGAS) and Spain’s tonnes per year (tpy). Its restart comes as Egypt
Naturgy at the end of 2020, paving the way for is trying to boost gas exports and become a
the restart. The agreements led to the settlement regional energy hub. These ambitions suffered a
of a long-running dispute between Eni, Naturgy setback last year as the coronavirus (COVID-19)
and Egyptian partners. Under the arrangement, pandemic caused demand for LNG to collapse,
Naturgy agreed to exit the Union Fenosa Gas pushing down spot prices for the super-chilled
(UFG) joint venture, which owned 80% in the fuel. Egypt is among a small group of exporters
Damietta plant, with the remaining 20% split that are particularly exposed to the spot market,
evenly between EGAS and EGPC. The new and was forced to curtail production owing to
ownership structure will see the plant owned the drop in prices.
50% by Eni, 40% by EGAS and 10% by EGPC. Egyptian exports – from the Idku plant,
Eni will also take over UFG’s marketing of which is operated by Royal Dutch Shell and is
natural gas in Spain, expanding its footprint in the only other liquefaction terminal in the coun-
the European market. try – have since rebounded. They stayed strong
The Italian company said this week that over the initial weeks of 2021 as winter demand
the new agreement had received all required for LNG soared. ™

A previous agreement to restart LNG exports fell apart last April (Photo: UFG )

P14 www. NEWSBASE .com Week 08 24•February•2021