Bulletin Iraq Fuel Update 06 (28 Apr 2003)
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Overview
The Kirkuk Terminal is open and expected to push crude and gas to the Refinery at Baiji and the Baghdad. The test pumping was successful and leaks quickly rectified.
The situation at the terminals located in Mosul and Dahuk is nor certain. However reports are coming in that fuel is available. Our difficulty is to ascertain whether these are old stocks or new product. Latest reports suggest that new product is getting through
The Basrah refinery has slowed production due to a pipeline fault. This is deemed important as Basrah is a key Refinery and its slow down will effect the supply in the southern region. The electrical power necessary to ramp up production is being worked on but this requires some 33 sub-station to be brought onto line to provide the necessary power to increase the water pressure to force the crude out of the ground. The requirement is around 33MW sufficient to power a medium sized town. The current estimate is that Basrah will not be fully operational to pre conflict delivery for 2/3 months. Stocks of diesel are high, LPG mix reduced and gasoline in short supply
Amarah terminal is open and pumping gas to Basrah and is expecting refined product when the Rumailah lines are open.
Nassiriyah, Kerbala, and Ramadi terminal state is unknown.
We believe the diesel stock remain high but the Power stations are placing a heavy demand on them. Basrah now enjoys a better supply than in pre conflict days. This is commendable but the down side is that valuable diesel stocks are being used up rapidly
LPG
We have turned attention to a potential LPG problem. Nasiriyah has one major bottling plant. The storage capacity was sufficient for 65,000 bottles and at peak periods delivers in excess of 22,000 bottles per day. The town and immediate surrounding area previously used 11,00 bottles per day. The main storage tank has been ruptured but one small tank remains undamaged. In Nasiriyah there is another small plant about 5 km away but it has been looted and initial estimates it that it will take time to repair and reactivate.
Other bottling plants maybe utilised at Al- Shatrah (38km) and Ar Rifa’I with a technical spare capacity of some 2,500 bottles per day.
The Salvation Army Team visited Ar Rifa’I and after a fruitless search for the owners liberated 33 x 10,000 litre gas tankers, with the assistance of the US Marine Corps, for temporary use. These will be transferred to Umm Qasr for repairs. These will then be pressed into temporary service using local drivers. Gas will be transferred in bulk from Basrah to Nasiriyah. In addition during the search of the yard a brand new mobile bottling facility was found in its packing cases. Work has begun to assemble the plant and test ready for first shipment.
The key in the solution will be the availability of LPG mix at Basrah. If we have to switch to collection at Baghdad it will place a strain on the operation. This is a temporary solution and the US Corps of Engineers with their contractors are assessing the Nasiriyah.
POL PRICES
Gasoline remains in short supply in the South. Old stocks are available in Umm Qasr. Gasoline is due to start production in Basrah on Friday In the Baghdad area the Dowrah Refinery is still producing LPG mix, diesel and limited gasoline from stocks. The line from Kirkuk has opened and the stocks will be replenished. In the North gasoline is available but lines of cars are reports. Price guide 20ID to50ID per litre
Diesel is in good supply in most areas. Price guide 15ID to 20ID per litre
LPG is available from stocks but the price in all areas is rising fast. Price guide 500ID per bottle.
