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Iraq gas recovery to increase pace for fertilizers projects

Mitsui, Toyo and Unico study $2 billion fertilizer project

A Japanese consortium made of Mitsui, Toyo Engineering Corporation (Toyo) and the consulting company Unico International Corporation (Unico) is working on a greenfield $2 billion fertilizer plant in the South of Iraq.

This project comes while the:

 – Houston-based engineering company KBR is revamping and expanding the North Fertlizer Plant located in Baiji, Iraq

 – Iraq’s State Company of Fertilizers South Region calls for tender the Khor al- Zubair fertilizer rehabilitation project. 

Since the wary period in 2003, the shortage of natural gas supply and electrical power, the damages to the facilities had significantly slackened the fertilizers production in Iraq since then.

In the mean time the Iraq Authorities have relaunched the oil and gas production through the licenses rounds and engaged a large program of flared gas recovery.

In the South the $17.8 billion project of flared gas recovery led by Shell is making good progress.

Shell to call for tender South Gas pipelines package

Revamping more than 30 collection and gathering installation of natural gas actually flared, Shell has already ordered the construction of two gas-fired power generation plants and is preparing the call for tender for the pipeline maintenance package of the South Gas project.

Actually 43% of the 2,409 million cubic feet per day (cfd) production of natural gas in South of Iraq are flared.

This South Gas project is managed by a joint venture between the State owned company South Gas Company, Shell and Mitsubishi.

The South Gas project is to collect the associated gas from the West Qurna 1, Rumaila and Zubair oil and gas fields.

From the actual production of 1.05 billion cfd of associated gas from these fields, only 450 million cfd are used for natural gas, LPG and condensate.

With the South Gas Pipeline maintenance package, Shell, Mitsubishi and South Gas Company will be able to supply the gas plants of Rumaila and Khor al-Zubair.

This program of restoration will have a double positive impact, to convert the actual flared gas into valuable feedstock and to prepare the infrastructures to capture and distribute the increasing production of associated gas to come from all the oil fields in development phases.

Iraq to rebuild Khor al-Zubair Fertilizer complex 3

In the north, KBR increases the capacity of the Baiji fertilizer plant by 120%

In the south, the Japanese call for tender made of  Mitsui, Toyo and Unico are preparing the first ever Japanese public-private partnership for projects develpoment in Iraq.

To be located in Basra this world scale fertilizer plant would have the capacity of 2,000 to 3,000 tonnes of ammonia.

The Japan International Cooperation Agency (JICA) is actually providing a $2 million funding to perform the feasibility study.

In parallel the Iraq’s State Company of Fertilizers is preparing the call for tender to rebuild the Khor al-Zubair fertilizer complex 3.

The Khor al-Zubair fertilizer plant is made of two facilities the complex 2 and complex 3.

The Khor al-Zubair complex 2 is still in operations with 73,000 t/y of ammonia capacity and 58,000 t/y of urea.

The Khor-al-Zubair fertilizer complex 3 has been stopped in 1989 during the war with Iran.

The project to be called for tender in November 2012 and to be awarded in 2013 is to rebuild this complex 3. 

Haldor Topsoe from Denmark will license the ammonia technology while Snamprogetti from Saipem Group in Italy will provide the urea process license.

With Shell, Mitsubishi and South Gas Company giving a good momentum to the flared gas recovery in the South of Iraq, the Japanese consortium, Mitsui, Toyo, Unico, and the Company for Fertilizer South Region will be able to move forward on their respective front end engineering and design (FEED) and engineering, procurement and construction (EPC) contracts to increase the fertilizer production capacity in the South of Iraq by 2015 and 2016.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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