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Mid July, downstream news update: Asia and the Middle East

Hydrocarbon Engineering,



China’s pace of crude oil processing peaked in June, as more refiners in the country completed plant maintenance projects.

According to data published on the Beijing based National Bureau of Statistics website, refining increased to 39.6 million t in June, equivalent to 9.7 million bpd, the most since February and a 4.8% rise from May.

Also in China, a subsidiary of CNOOC claims that it has not caused a massive fish die off in Daya Bay, 40 km east of Hong Kong.

Hundreds of dead eels have washed ashore on Daya beaches in the past week, causing alarm among nearby residents. An unidentified spokesman of CNOOC Guangdong subsidiary has however insisted that seasonal oceanic currents are likely to blame, and not air and waste water emissions from CNOOC Huizhou refinery.


Hindustan Petroleum Corporation (HPCL) has signed an agreement with the Rajasthan government, establishing a joint venture to set up a refinery/petrochemical complex in the Barmer district.

The joint venture company, HPCL-Rajasthan Refinery Limited will execute the project, which is estimated to cost Rs. 372.3 billion. Completion is anticipated to take approximately four years.

Also in India, Bharat Petroleum Corporation Ltd (BPCL) has awarded a Rs 550 crore contract to Essar Projects (EPL) for executing certain packages of the Kochi refinery expansion project.

Essar has won the project in a consortium with GR Engineering of Mumbai for the engineering, procurement and construction (EPC) work of a reactor regenerator package of a 2.2 million tpy fluid catalytic cracking unit (FCCU) at the refinery, which is set to expand to 15.5 million tpy.

Middle East


The annual revenue of downstream polypropylene converters in the Gulf Cooperation Council (GCC) will reach a combined total of US$ 1.34 billion in 2016, predicts US based consultancy firm, Frost & Sullivan.

The GCC comprises of the UAE, Saudi Arabia, Bahrain, Oman, Kuwait and Qatar. In 2011, downstream polypropylene converters in the region had combined annual revenues of US$ 983.1 million.


Iran Oil Ministry spokesman, Alireza Nikzad Rahbar, has announced that the country has signed agreements with Baghdad and Islamabad under which Iran will construct several refineries in Iraq and Pakistan.

Iraq reportedly plans to construct an oil refinery in the town of Nahrain, just south of Baghdad, with capacity 140 000 bpd. Another will be built in the town of Kuya, with a 70 000 bpd capacity.

Further refinery projects are intended for the city of Nassiriya, for export pruposes, with a capacity of 300 000 bpd and a final refinery will go up in Amara, 300 km south of Baghdad.

Meanwhile, Iran and Pakistan has signed a memorandum of understanding (MoU) for setting up an oil refinery, valued at US$ 4 billion, at Gwadar Port.


Khyber Pakhtunkhwa (KP) Chief Minister, Pervez Khattak, has directed the authorities of the Provincial Energy and Power Department of Pakistan State Oil (PSO) to expedite work on the establishment of a proposed oil refinery in the province.

At a briefing regarding establishment of the oil refinery, Khattak said that on completion the project would provide sound basis for the economy of the province by saving foreign exchange and making the province self sufficient in petroleum products.

Total refinery capacity will be 40 000 bpd with an estimated construction cost of US$ 650 million. Project completion is anticipated for mid 2016.

Edited from various sources by Emma McAleavey.

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