Downstream news update: Africa and Asia

Africa

Nigeria

A key oil workers union has conducted a three day strike in demand for better working conditions, leading to long queues at petrol stations in a number of Nigerian cities.

The strike, which saw tanker drivers refusing to deliver petrol to Africa’s largest oil producer, led to panic buying, particularly in the economic capital, Lagos, and the main northern city of Kano.

Many filling stations are now closed. It is unclear whether this is due to the fact that they have run out of fuel or whether they are rather conserving supplies in case strikes continue.

Zambia

The Zambian government has approved the sale of 49% shares in Indeni Oil Refinery in Ndola.

Also in Zambia, the government is looking for US$ 410 million for the construction of a new refinery. According to Mines, Energy and Water Development Minister, Christopher Yaluma, the Zambia Development Agency (ZDA) is already interacting with possible partners for the new development.

Asia

India

India has expressed interest in the construction of refineries and petrochemical plants in Iraq. It is additionally keen to source LNG from its second largest oil supplier.

Oil Minister, M Veerappa Moily, has emphasised the need to build the relationship between the two countries by increasing economic cooperation. He has outlined how Indian companies have the expertise and inclination to build oil refineries, petrochemical plants and fertiliser units in Iraq.

Also in India, hundreds of people in Baytoo have taken part in protests against the relocation of the Barmer oil refinery from Leelala to Pachpadra. The protestors threatened to forcefully shut down the district’s Mangala processing terminal (MPT) if the state government did not reverse its recent decision.

Meanwhile, the AP Industrial Infrastructure Company (APIIC) in the country is considering reallotment of 1500 acres at Atchutapuram for the establishment of a 15 million t refinery/petrochemical complex by HPCL.

HPCL has already approached the state government to expedite the process for allotment of land, which was taken away from HPCL last year following failure by the company too launch work at the refinery project within a stipulated time frame.

Malaysia

Malaysia’s Petronas is in talks to sell 10% of its Canadian shale gas assets to Indian Oil Corp. Terms of a potential deal have not yet been finalised.

Turkey

The International Finance Corporation (IFC) plans to approve a loan of US$ 150 million for the construction of STAR Rafineri’s oil refinery in Izmir, Turkey.

The new facility will be designed to produce 1.66 million t of naptha, 5.95 million t of diesel fuel with ultra low sulfur content, and 500 000 t of kerosene.

The refinery will additionally produce 500 000 t of reformates, 630 000 t of petroleum coke, 240 000 t of liquefied gas, 415 000 t of mixed xylol, 75 000 t of olefin liquefied gas, and 145 000 t of sulfur.

Completion of the facility is estimated to take approximately four years.

Vietnam

Construction of the Nghi Son refinery will be postponed to September/October this year due to holidays in the countries of foreign partners, according to Phung Dinh Thuc, Chairman of the Board of Members of the Vietnam Oil and Gas Group (PetroVietnam).

Estimated completion date is early 2017. Capacity at the refinery will be 200 000 bpd. Once in operation, the Nghi Son refinery will improve the ability of self supply gasoline and oil in Vietnam from 30% to 70%.

Edited from various sources by Emma McAleavey.

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