Syria working on oil refinery and natural gas exploration

• Infrastructure ravaged by civil war
• Gas deals with Saudi Arabia, Qatar and UAE
• Building 150,000-bpd refinery

Syria is working on rebuilding its energy sector with a new oil refinery and exploration for natural gas after a 14-year civil war tore apart its infrastructure.

Work is underway to construct a refinery with a capacity of 150,000 barrels per day (bpd) and to search for offshore natural gas, energy minister Mohammed Al Bashir told state-owned Ekhbariya television.

The minister said the country had signed several contracts with Saudi Arabia, Qatar and the UAE to increase gas production.

No other details on the refinery and contracts were given.

This month US-based ConocoPhillips and the Syrian Petroleum Company signed a memorandum of understanding to develop existing gas fields and fund new ones.

The Baniyas oil refinery has a production capacity of 120,000 bpd but is operating at 95,000 bpd due to degraded facilities, Reuters reported.

The country’s second facility is located at Homs, with capacity of 100,000 bpd.

In September the country exported 600,000 barrels of heavy crude, its first such official shipment abroad in 14 years.

Oil production is expected to reach 200,000 bpd, the government has said, adding that desalination plants will be built to address the country’s worsening drought.

Further reading:

• ‘We don’t want Syria to be a burden,’ president tells investors
• Syria opens for business as ministers go on charm offensive
• $6.4bn of Saudi investment raises hopes for Syria’s recovery

Abu Dhabi-listed Dana Gas signed a preliminary agreement this month with Syrian Petroleum to redevelop and expand natural gas fields across central Syria.

UAE’s DP World has signed a 30-year concession deal with Syria’s General Authority for Land and Sea Ports to develop and operate the port of Tartous.

In July US President Donald Trump signed an executive order terminating a US sanctions programme on Syria.

The Syrian economy is “showing signs of recovery and improving prospects”, the IMF’s head of mission for the country, Ron van Rooden, said following a visit to Damascus last week.