Project Name: JPRC – Zarqa Refinery Expansion
Name of Client: JPRC – Jordan Petroleum Refinery Company
Budget (US$): 700,000,000
Main Contractor: Not yet appointed
Facility Type: Refinery
Status: Feasibility Study
PMC: Atlas Investment Group & Taylor DeJongh & Jacobs International & McCarthy Tetrault
Location: Zarqa
Project Status
The 70,000-barrels-per-day (bpd) refinery produced 3.59 million tonnes of refined products in 2001, but its output fell to an estimated 3.3 million tonnes (66,000 bpd) in 2002, having amounted to no more than 1.66 million tonnes in the first half of the year.
The Zarqa refinery was built by Snamprogetti of Italy and came onstream in 1961 with an initial capacity of 7,500 bpd. It was expanded to its present size in three phases completed in 1970, 1974 and 1980-85. As presently configured, the plant consists of a 90,400-bpd distillation unit, a 17,000-bpd vacuum distillation unit, a 4,350-bpd catalytic cracker, a 8,640-bpd catalytic reformer, a 4,230-bpd catalytic hydrocracker and a 14,400-bpd catalytic hydrotreater, as well as Unibon and Merox units and two ERG units.
The refinery is operated by Jordan Petroleum Refinery Company (JPRC) under a concession agreement that expires in 2007.
The following companies bid for the PMC contract: Atlas Investment Group & Taylor DeJongh & Jacobs International & McCarthy Tetrault
Fieldstone
In October 2002, a consortium of Atlas Investment Group, Taylor DeJongh and Jacobs International and McCarthy Tetrault received a letter of intent for the advisory mandate on the proposed upgrade and expansion of Jordan’s only oil refinery in Zarqa.
A group led by Fieldstone was originally in line for the mandate, but is understood to have withdrawn its bid following a change of personnel within the company.
The advisory mandate is divided into three stages: evaluating Jordan’s present energy requirements; drawing up and negotiating a new concession agreement; and providing technical and financial advisory services for the expansion of the refinery.
A market study was done by Purvin & Gertz.
In 1999, a feasibility study was done by MW Kellogg Brown and Root basing on Arab light crude oil.
In 2003-2004, the feasibility study was updated by Jacobs basing on Arab light crude oil.
The feasibility study considered several options for expansion vs. products imports at import parity prices.
JBIC financed a pre-feed study, which is being conducted by Mitsui and Toyo Engineering.
In December 2002, the Jordanian Petroleum Refinery Company (JPRC) signed an agreement with a consortium of the local Atlas Investment Group, Taylor DeJongh, Jacobs International, and McCarthy Tetrault for the advisory mandate on the proposed upgrade and expansion of the oil refinery, in Zarqa.
The new study takes into account government plans to phase in the use of natural gas for industry, which is currently reliant on heavy fuel for its feedstock requirements.
If the planned expansion goes ahead, it would replace earlier plans for developing a second refinery at Aqaba, on the Red Sea, which would have exported part of its output.
Bids were due for the design, construction and supply of two hydrocracker reactors and a combined feed/effluent heat exchanger for a hydrocracker unibon unit at Zarka refinery in July 2004. Jacobs Engineering completed in early July technical and feasibility studies for the project.
Some work has already been done on the licence and selection stages, with the licensing process close to being finalised. The TOR includes provisions for the expiry of the concession agreement of Jordan Petroleum Refinery Company in 2008.
In August 2005, the Energy & Mineral Resources Ministry was expected to select imminently consultants to conduct studies for the estimated $700 million modernisation of the country’s oil sector.
Project Scope
The refinery is designed to process Arab Light Crude Oil.
The refinery’s capacity increased from 7,400 bpd to 100,000 bpd through 3 expansions and revamps stages. The refinery's units are UOP licensed.
Current products: LPG, Gasoline, Jet Fuel, Kerosene, Diesel, HSFO, Asphalt
Auxiliary Facilities:
LPG cylinders Factory with a capacity of 100000 cylinders per year
25,000 tonnes per year Lube oil blending plant
LPG storage in Irbid (north),Amman and Zarka (center),and Aqaba ( south)
Three LPG filling stations
Products storage terminal in Aqaba
Crude Oil receiving station in Zarka
Auxiliary Facilities & Services:
Two crude supply lines from the Tapline
Jet fuel storage and planes refuelling facilities at Jordanian airports
Fuel transportation fleet consisting of 455 trucks
Distribution of fuels to all stations in the country, and providing maintenance for 324 stations
