BASE OIL &BY-PRODUCTS REF INERY PROJECT BANIAS / SYRIA 1-Project: Base Oil & By-products Refinery. 2-Company: Company is Syrialube Co. 3-Company concern: Syrialube is 100% private concern. It was established for the aim to execute and own the base oil project in Banias. Syrialube was awarded a license to build a base oil refinery specifically to produce base oil of different grades and other by-products of equivalent significance to the industrial sector in Syria and the region. This license was issued in favor of Syrialube from the Syrian highest council of investment, under the presidency of the prime minister. This license is certified and signed by the present Prime Minister and it is issued under Investment Law n˚10. 4-Location: Facility is arranged by Syrialube Co. to build its base oil refinery on 75000sqm adjacent to the existing refinery in Banias area that is on the Syrian coast. There are two refineries in Syria; one is in Homs area and the other one is in Banias. Both refineries are operating on light and heavy crude but producing only light products from the atmospheric distillation tower and the residue is introduced to the vacuum distillation tower to produce gas oil and low quality asphalt.The government has already taken the decision to revamp the two refineries and mainly to revamp the Banias refinery . 5-Feedstock: A connection of pipes will provide feedstock from the existing Public refinery in Banias. The feedstock provided is Atmospheric residue that is the residue obtained after the distillation of lighter products in the atmospheric distillation tower. Syrialube will receive 750000MT/Y of Syrian light atmospheric residue Priced according to Plats Dubai with a ce rtain discount .Analysis was performe d and results came to be positive in terms of illustrating the commercial and technical viability of the above mentioned feedstock and its products quantity&quality. 6-Terminal:The use of the existing terminal of Banias Refinery(on the Mediteranean Sea) is authorized to Syrialube from the Syrian government for export and import requirements, thus opening a wide door for export to all the region. 7-Products: According to initial studies and to license, Syrialube refinery will produce the following products: -Base oil of different grades -White oils for different uses -Wax of different grades -Gas oil -Asphalt of high quality -Aromatics and naphtanics 8-Product marketing: The main product will be Base oil which is the raw material used by blending plants to produce different kinds of finished lubricating oils which are used in vehicles, marine and all types of engines in addition to that all oils used in all industrial sectors. The government does not allow imports of finished lube o ils to Syria; this is why base oil of different grades is currently imported in order to satisfy the needs of the existing blending plants with their feedstock needs mainly SN 300,SN 150 and SN 500 and bright stock. The Syrian government has its own blending plant(Homs Blending Plant), where it manufactures lube oils needed to public sector mainly the military and private sector use. Also there are Private Sector blending plants. These plants existed recently, these are Mobil, Castrol, Fox, Petromin and other s mall plants that satisfy the needs of private vehicles and industries. The capacity of each of these blending plants ranges between 15000 to 35000 MT/Y. The estimated imports of base oil of different grades are around 240,000 MT/Y and in light of estimated increase of future demands quantity and quality. Syrialube will produce 300 000 MT/Y of base oil of different grades out of which 50-60% would be sold in the local market to supply present and estimated future demands of both Public & Private Sector Blending Plants .All products would be sold according to international prices. All imports of base oil& other by-products will not be permitted because it is considered as raw material to other industries and the law is clear that once a raw material is produced in Syria, imports will be stopped, Of course this might eventually change with the trend of globalization and Gat wave coming to the area and the Syrian EU partnership agreement ,but this will not illuminate the factor of shipping costs to Syria which will give always Syrialube an advantage over other producers in the region, due to the high tariffs & costs of handling of large shipments and big financial costs. Wax products are currently imported to Syria to satisfy the needs of different industrial sectors, taking in consideration that the two refineries do not produce any wax quantities of any type or Grade. In addition to the above Syria is an agricultural and industrial country and requires a lot of white oils(currently there is no production in Syria and all quantities are imported),along with these products the refinery will produce large quantities of high quality asphalt which is demanded a lot in Syria & Regionally and has good prices. 9-Technology License: Syrialube intends to build its project using the latest technologies(state of art) in the domain in order to be able to produce competitive qualities and quantities locally and regionally and thus taking in consideration present and future demands and for this aim many licensors have been approached such as ExxonMobil, ChevronTexaco ,Shell and Axens(part of the French petroleum institute) and discussions are made with many feasibility study houses with extensive and wide experience in the domain such as FosterWheeler EU and Technoexport (Czech Republic) . 10-Estimated cost: Different technologies could be adopted to produce base oil and the other by-products. These technologies have its different advantages and disadvantages thus different cost estimations. According to our studies the cost of this refinery will be in the range of 250- 300 millions USD. Refinery units needed: -Vacuum distillation unit -Propane deasphalting unit -Solvent Extraction unit -Solvent dewaxing units -Hydro treating units Syrialube refinery should take in consideration both current and future needs of the Syrian market and export markets requirements( specifically rapid changes in the oil specs put by car manufactures). Since Syrialube’s Base Oil Refinery will be taking its feedstock quantities directly form the adjacent Public sector Refinery(Banias Refinery) & Since the Syrian government will purchase its needs from Syrialube’s products(specially Base Oil) at international prices( there will be a debit –credit account between Syrialube and the Oil Ministry)& Since its more feasible to private blending plants in Syria to purchase their demands of Base Oil and the other by-products in Small quantities on regular basis (due to payment facilities, shipping costs and big amounts storage inconvenience). And Due to the strategic location of Syrialube’s Refinery in consideration to location, shipping fees & agreements ( ex:custom tariffs are cancelled between Lebanon and Syria) surplus of all products could be exported competitively to supply the demands of blending plants &other industries in Lebanon, Cyprus, Turkey, Jordan,Iraq and the United Arab Emirates along with some African &European countries. This project has major significance on the Syrian economy since it will increase the added value of the Syrian Oil and will provide a wide number of job opportunities to locals on different levels of social and educational backgrounds. Our belief is that low labor&over head costs in addition to all the above mentioned factors play a major role in building up the feasibility of our project stressing its competitiveness in the regional market & strategic economic importance in Syria and in the Region taking in consideration that one of the major reasons of the current rise of oil prices is shortage of refining capacity in the world .
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