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  • JGC Receives Order for Refinery Upgrading Project in Iraq -Contributing to reconstruction and economic development in Iraq
    édité le 13/08/2020 - Plus de news de "JGC" - Voir la fiche entreprise de "JGC"


JGC Receives Order for Refinery Upgrading Project in Iraq -Contributing to reconstruction and economic development in Iraq
JGC Holdings Corporation announced today that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been received the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil. Details of the project are as follows.

1. Client: South Refineries Company (Oil refining company under the Iraqi Ministry of Oil)
2. Construction location: Basrah, Republic of Iraq (Approx. 550 km SE of the capital of Baghdad)
3. Primary equipment(processing abilities):
- Fluid catalytic cracking unit (34,500 barrels/day),
- vacuum distillation unit (55,000 barrels/day),
- diesel desulfurization unit (40,000 barrels/day), etc.
4. Contract services: Engineering, procurement, construction and commissioning
5. Contract type: Lump sum contract
6. Order amount Approx.: 400 billion JPY
7. Scheduled completion: 2025

Iraq is one of the world's leading oil-producing countries, with a confirmed crude oil reserve of 145 billion barrels and a daily crude oil production of 4.41 million barrels. However, the two refineries currently in operation were constructed in the 1970s and their production capacity has decreased due to war damage and deterioration. Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline.

This upgrading of the Basrah refinery will newly install, on land adjacent to the existing Basrah refinery, fluid catalytic cracking unit, vacuum distillation unit, and diesel desulfurization unit, etc., thereby increasing production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel, making it possible to reduce the gap in supply and demand for petroleum products. In addition, the petroleum products produced at the modernized refinery will meet international environmental standards and it is expected that they will contribute to reducing the environmental impact. This project is positioned as spearheading the modernization and sophistication of Iraq's oil refining sector.

Funding for the project will be procured through Japanese ODA loans from the Japan International Cooperation Agency (JICA), and is the largest-scale reconstruction assistance from Japan since the 2003 Iraq War.

In carrying out this project, the Group plans to conduct skills training for more than 1,000 Iraqis and to hire approximately 7,000 skilled Iraqi workers. Furthermore, it is expected that more than 2,000 operating personnel jobs will be created after the project's completion, which will contribute to solving the unemployment problem in Iraq.

The Group completed a power station reconstruction project in Iraq in 2013, and this is the Group's second project in Iraq. The Group will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.

About JGC

JGC is a global engineering, procurement, and construction firm committed to delivering a complete range of project services to our clients, while providing safe and cost-effective project execution. Since its founding in 1928, JGC has executed some 20,000 projects across the globe for the refining, LNG, petrochemical, power, pharmaceutical, and mining industries. From conception to commissioning, we partner with our clients to deliver successful engineering, procurement, and construction programs.

About South Refineries Company

South Refineries Company was founded in 1969 through the establishment of Basra refinery, which actually began production on 1974 by establishing (Refining Unit No. 1), which is one of the major manufacturing units in the country where the production of oil derivatives using the latest scientific methods and advanced technology in production, which resemble their high quality products, including foreign and meets the requirements of consumers. And continue to modernize and expand the company and diversify their products and improving quality, it has been done by establishment of a refinery and the second unit to improve gasoline and oil refinery and the liquidator of Dhi Qar, Maysan and the liquidator is currently working on the company to obtain a certificate of quality performance (ISO).


Origine : Communiqué JGC

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