Bahrain Refinery Has New Project To Produce Top Quality Diesel.

The 225,000 b/d oil refinery at Sitra, operated by state-owned Bahrain Petroleum Company (Bapco), is to produce 0.05% sulphur diesel by 2003. A $450m project to reduce the sulphur content of the refinery's diesel to this level was recently revived after years of delay. Bapco on Nov. 23 awarded a contract to Kinetics Technology International (KTI) of the US for engineering work, licencing and design of a hydrogen plant which is an important part of the project. KTI's work is to be completed in May 1999. Construction of the plant and related facilities should begin in early 2000. Bapco is to borrow the required $450m from GCC and international banks.

The project will allow Bapco to export the top quality diesel to the European Union, where the 0.05% sulphur specification has been in force since Oct. 1, 1996, and to the other premium markets. Kuwait's refineries are the biggest producers of 0.05% sulphur diesel in the Gulf. The biggest producer and exporter of this diesel in Saudi Arabia is the Saudi Aramco Mobil Refinery Co. (Samref) at Yanbu', on the Red Sea, which is expanding to more than 360,000 b/d. Samref is owned 50-50 by Saudi Aramco and Mobil.

The Saudi-owned Petroma Refining and Marketing Co. (PRMC) is intending to have a $5 bn complex built at the Hidd industrial zone, near Sitra, to include a 250,000 b/d oil refinery and petrochemical plants. The refinery would be producing top quality diesel and gasoline.