JGC targets to complete Iraqi refinery upgrade in 2025

Japanese engineering firm JGC has been awarded a ¥400bn ($3.75bn) contract to upgrade the 210,000 b/d Basrah refinery in southern Iraq for completion targeted in 2025.

JGC's lump-sum engineering, procurement, construction and commissioning contract is to build a fluid catalytic cracker (FCC) complex that includes a 34,500 b/d FCC unit, a 55,000 b/d vacuum distillation unit and a 40,000 b/d diesel desulphurisation unit among others. These processing units are planned to be installed next to the existing refinery, according to JGC.

The Iraqi oil ministry is targeting to start up the project sometime next year, according to state-owned South Refineries. It aims to add 19,000 b/d of gasoline, 36,000 b/d of diesel and 41,000 b/d of fuel oil production capacity, as well as 4,300 t/d of LPG, to reduce the gap in supply and demand for oil products in Iraq.

The project will be funded by Japan's overseas development assistance loan as part of financial assistance for Iraq's reconstruction efforts. Japan last year signed a ¥110bn loan to finance part of the project.

By Rieko Suda