Summary
Content
The UNJLC Iraq Fuel Bulletin aims to provide a clear and concise periodic overview – usually weekly – of the situation as it exists in Iraq with regards to the oil industry. It focuses on the availability of fuels, particularly as they affect the welfare of the populace and related humanitarian work. It further seeks to identify major issues for the humanitarian community and other interested parties, to provide relevant background and constructive recommendations on current issues, and to alert responsible parties to emerging issues in the crisis so that they may be addressed in good time. The UNJLC Iraq Fuel Planning Team presently has dedicated representatives in Baghdad, Basra and Erbil. For further information please contacted info@unjlc.org.
Contact details for all UNJLC offices are available here.
Diesel
The strategic stocks of diesel remain high. Transportation to the distribution system and outlets ranges from intermittent to poor. The priority is decided by the Oil Minister in conjunction with the other Ministries and requires a formal letter between Ministries to release stocks. However in general diesel is available in most outlets that are operational.
Gasoline
The production has increased and the weekly figures indicate the highest production figure in recent weeks. The opening of the small plants at Nassirya with what is known as a skimmed product that requires minimal refining is expected to produce around 10,000 barrels per day. It will serve the local area. A similar plant will open in 2 weeks in Amara.
A key chemical used in the production of gasoline is Tetra Ethyline Lead (TEL). The JLC has in conjunction with the Oil For Food Programme in New York worked to fast track supplies that were either with the supplier or in the pipeline. To date the team has arranged shipments for some 6500 tons. The shipments of TEL from UN sources is expected to arrive in Iraq from 23rd June onwards. This will have a positive effect on the supplies of gasoline. However the current stocks of TEL are low and will require a top up buy now to fill the gap until the new stocks arrive. If this does not take place further shortages will occur.
Liquid Petroleum Gas (LPG)
The LPG supply has slowly increased but is extremely poor and requires addressing. The plants at Basrah and Kirkuk are working at a low capacity. The Khor Zubair plant is capable of producing at full output around 270 tons per hour. However the capacity will be difficult to realise as the refrigeration plant requires a charge of 100 tons of pure propane to start it up, there is lack of basic security and tools for the Iraqi Oil Workers to facilitate repairs. It is evident from a site visit that all is not well and I would from examination of the data and a visit estimate that LPG at the Basra Plant will not be available other than by importation for at least 60 days. This could be longer if the lack of security continues. This is extremely serious as Basra is the key plant in the supply to Iraq. Baiji is the next most important with a production of 2,000 tons per day capability. That is due to go into its maintenance cycle and will exacerbate the problem.
The JLC field officers found that 1,500 bottles needed O rings before they could be used. The type and spec was identified and the manufacturer in India contacted. He was persuaded to make a donation of the rings. DHL delivered them to Kuwait and back to Basra all in the space of 3 days.
Security
Remains a constant thorn to progress. Teams from KBR always appear to be waiting for escorts and work is progressing at a snails pace. The product pipelines that would help move gas, diesel and gasoline around the country, are still awaiting assessment teams and are unguarded. This will undoubtedly slow the recovery of the oil industry to pre conflict levels and efforts to return the country to normal.
ABOUT UNJLC
UNJLC is an inter-agency facility reporting to the Humanitarian Coordinator for Iraq and generally to the Inter Agency Standing Committee. Its mandate is to coordinate and optimise logistics capabilities of humanitarian organisations in large scale emergencies. UNJLC operates under the custodianship of WFP that is responsible for the administrative and financial management of the unit. UNJLC is funded from voluntary contributions that are channeled through WFP. The UNJLC project document for Iraq can be viewed at the UNJLC website (www.unjlc.org).