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Late July, downstream news update: Africa, Asia and Europe

Hydrocarbon Engineering,



According to projections by the Nigerian Petroleum Corporation (NNPC) Nigeria stands to save approximately US$ 3.5 million once the government completes its full rehabilitation of the nation’s three refineries in Prot Harcourt, Kaduna, and Warri.

The Group Executive Director of NNPC, Tony Ogbuigwe, has indicated that the aim of rehabilitation is to restore the refineries to 90% name plate capacity utilisation and design yields.

According to him, after rehabilitation, the refineries will meet 70% of the country’s product needs.



The Indian government plans to construct an Rs 37 230 crore refinery in Barmer, Rajasthan. The Congress ruled state has already offered the proposed refinery a financial package of Rs 56 000 crore spread over 15 years to make the proposed project financially viable.

The Cabinet is expected to approve the project before United Progressive Alliance (UPA) chairperson, Sonia Gandhu, and Congress vice president, Rahul Gandhi, visit the state to address election rallies in September.

Also in India, the state government has signed an MoU with Indian Oil Corporation Ltd (IOCL) for its refinery project at Paradip, which is to include a fixed timeline for investment at Petroleum, Chemicals and Petrochemical Investment Region (PCPIR).

The company, which has been setting up the refinery since 2000, has faced various hurdles including slump in the oil market, land and labour problems, delay in commissioning of the captive power plant and protests over laying of water pipeline from Mahanadi to the plant site.

Since the refinery is already behind schedule, the state government wanted a fresh agreement mentioning fixed deadline for the petro complex project. IOCL has recently expressed confidence to commission the first phase of the refinery project by September of this year.

Meanwhile, India and Iraq have expressed mutual interest in the establishment of new refineries in Iraq. Union Minister for Petroleum and Natural Gas, M Veerappa Moily, led a 28 member delegation to participate in the 17th India-Iraq Joint Commission meeting in Baghdad earlier this month.


A South Korean consortium has secured a US$ 240 million order to expand an oil refinery in Turkmenistan.

Under the contract with Petronas Carigali, LG International Corp. and Hyundai Engineering Co. will rebuild an oil refining facility in Kiyanly on the coast of the Caspian Sea by the end of 2015.

The Korean companies will be in charge of design, purchasing of construction materials and the entire building process.

The refinery, once completed, will be capable of processing an additional 10 000 bpd of crude oil and 35 million m3/d of natural gas.



Spain’s Gas Natural Fenosa intends to rebalance its portfolio by increasing activities abroad in order to compensate for weakness at home in thewake of the recession and recent overhaul of the Spanish energy sector.

Earlier this year, Gas Natural Fenosa signed an agreement with Sonatrach of Algeria to buy 10% of Medgaz, a submarine natural gas pipeline between Algeria and Spain.

Gas Natural Fenosa will additionally head the newly created Spanish Association for Natural Gas for Mobility (GASNAM). The aim of the new association is to foster the use of natural gas mobility, both on land and at sea; at least 10 key industry players have joined. 

Edited from various sources by Emma McAleavey.

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