P. 7 ~ Continued - Global capacity growth reverses; Asian, Mideast refineries progress

Dec. 5, 2011

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Jubail will refine Saudi heavy crude into products ranging from motor gasoline to petroleum coke for domestic and export markets. About 54% of the new plant's output, said the story, will be diesel and jet fuel with an estimated 11.4 million tpy.

Elsewhere in the region in first-quarter of 2011, Abu Dhabi Oil Refining Co. (Takreer) awarded contracts of unspecified amounts for mass-transfer equipment to GTC Technology Korea Co. Ltd., a unit of Houston-based GTC Technology International LP, as part of an expansion of the 350,000-b/d refinery at Ruwais. The project is to be completed in 2013 (OGJ Online, Feb. 9, 2011).

Also in Abu Dhabi, International Petroleum Investment Co. of Abu Dhabi announced in March plans to complete construction by yearend 2016 of a 200,000-b/d refinery at Fujairah, on the UAE's east coast, according to Bloomberg.

The refinery, set to cost about $3 billion, would sit near the outlet of a 1.5 million-b/d oil pipeline running to the coast and set to be completed this year. The pipeline would give access for exports to the Gulf of Oman, allowing shipments to bypass the Strait of Hormuz.

In Oman, the Sohar refinery on the northeast coast is expanding by installing a crude unit and hydrocracker (OGJ Online, Mar. 2, 2011). The 116,000-b/d refinery processes a mixture of Oman Export Blend crude and long resid delivered by pipeline from the 106,000-b/d Mina Al-Fahal refinery near Muscat 165 miles to the southeast.

Oman Refineries & Petrochemical Co. let a $49.8 million contract to CB&I for FEED and project management for the project that will include a 71,500-b/d crude distillation unit, 96,800-b/d vacuum distillation unit, 66,400-b/d hydrocracker, and 42,400-b/d deasphalting unit.

Commissioned in 2006 with an initial capital investment of $1.35 billion, the Sohar refinery features a crude unit with a capacity of 116,400 b/d and a residue FCCU of 75,260 b/d.

Early this year in Iraq came news that the country was to double refining capacity by 2020 to meet domestic needs and allow for exports. Iraq's plans include increasing its oil-processing capacity to 1.5 million b/d by the end of the decade. Production in 2010 was about 530,000 b/d because of damage to refineries.

As part of the capacity increase, Iraq aims to build a 300,000-b/d refinery in southern Iraq that will process crude oil from Nasiriyah oil field for export from a port in the south.

In May, work on the Nassiriyah plant was set to begin.

Iraq's State Company for Oil Projects, part of the Ministry of Oil, had selected UOP LLC to provide reforming, isomerization, fluid catalytic cracking, and selective hydrotreating technologies for the new plant, according to the engineering company. UOP said that Iraqi refining capacity is to more than double by 2017 to 1.6 million b/d and to double again by 2030.

In 2010, the oil ministry reported plans to invest about $20 billion in four refineries. In addition to Nassiriyah, it has let contracts for preliminary work on refineries with capacities of 150,000 b/d each at Karbala, Kirkuk, and Maysan (OGJ, July 5, 2010, p. 36).

In July 2011, Iraq's ministry of oil signed an agreement with Karbala Refinery Corp. Ltd. for construction of a 200,000-b/d refinery in the Karbala region (OGJ, Aug. 8, 2011, Newsletter).

"Karbala Refinery will be located [62 miles] south of Baghdad on a [2.3-sq-mile] plot of land, and will be the most advanced state-of-the-art refinery with almost [a] full conversion rate and with an estimated cost of $6.5 billion," said KRC Chief Executive Officer Dean Michael.

In August, Bloomberg reported that Iraq's oil ministry had signed a preliminary agreement with Egyptian company Al Qalaa to build a 150,000-b/d refinery in the northern city of Mosul.

Crude oil for the plant will come from two nearby fields of Najma and Qaiyarah. Al Qalaa will conduct design studies for 3 years before construction of the refinery.

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