Japanese engineering company JGS obtained a contract to upgrade a refinery in Iraq as part of the country’s program to reduce the gap in supply and demand for oil products.
The lump-sum engineering, procurement, construction, and commissioning contract is to construct a fluid catalytic cracker (FCC) complex beside the existing 210,000 bpd Basrah refinery in southern Iraq, including a 34,500 bpd FCC unit, a 55,000 bpd vacuum distillation unit and a 40,000 bpd diesel desulphurization unit among others.
The contract is valued at JPY400 billion (USD3.74 billion), funded by Japan's overseas development assistance loan as part of financial assistance for Iraq's reconstruction efforts.
The start-up of the project is scheduled for some time in 2021 and the completion target is 2025.
Iraq is planning to add 19,000 bpd of gasoline, 36,000 bpd of diesel, and 41,000 bpd of fuel oil production capacity, along with 4,300 tpd of LPG.
