Jumbo-SAL Alliance begins delivery of Basrah Refinery Upgrading Project for JGC Corporation

SURAT : The Jumbo SAL Alliance (JSA) has started its activities in the Refinery upgrading project in Basrah for JGC Corporation. It is one of the largest projects ever undertaken by Allianz. The Jumbo Javelin loaded the first of 19 vans Dahej India.

Dedicated Ships

As part of the project, the Jumbo-SAL-Alliance will transport a total of 450,000 FRT freight for its customer. Jumbo Kinetic with two 1,500 t cranes and SAL Heavy Lifts MS Svenjawith two 1,000 t cranes, will be used for the duration of the transport scope for the project.

During this time, the two ships will make seven voyages each, giving the project full flexibility and logistical control. The departure schedules are fixed so that everyone involved in the logistical cycle knows in good time when which freight will be picked up and delivered.

The two vessels, with deadweight tonnages of 14,000 and 12,500 t respectively, are strong enough to handle all the modules and small enough to access the restricted Morimatsu facility in Nantong, China, where much of the cargo is loaded.

stronger together

In addition to the two ships committed to the project, the Jumbo SAL Alliance will provide ships for a further five voyages. With their combined fleet of thirty vessels, the alliance is able to offer JGC a vessel with the required capabilities and level of service at any time while ensuring it can continue to serve other customers.

Mr. Kiharu Yamashita, Project Logistics Manager of Basrah Project, JGC explained: “Having two dedicated ships for the duration of this phase gives us transparency and ensures we can stay on schedule. The Jumbo SAL Alliance, which can accommodate the scale and capability required for this project, is essential to the successful delivery of the project to our client.”

In back-to-back runs, the Jumbo SAL Alliance will transport a range of items from locations in India, China, Thailand and Korea. There are 80 modules under the cargo. In doing so, Allianz draws on its experience in the use of modular masts. This is applied using JGC’s in-house designed frame, specially designed for lifting modules at the Morimatsu facility.

The deliveries also include the transport of 31 pieces of equipment, including a regenerator, vacuum columns, a fractionator and seven 800-ton shell tanks, each 82 m long.

Overall project focus

Already in 2019 the Jumbo-SAL-Alliance started with the provision of engineering support with the preparations for the project. This involved the design of four different loading mats covering the different types of vessels to be used, the loading area and the location of the cargo on the vessel.

As the project is carried out in successive runs using the same vessels, the load-sharing material can be recycled (reused) each time, providing optimal cost-efficiency.

Laurens Govers, commercial director at Jumbo-SAL-Alliance: “With every project we carry out, we not only consider the transport costs, but also the overall project costs. In this project, our early commitment played a significant role. We were able to work with the client to optimize the sail plan and appropriate vessel rotations to suit the vessels and maximize efficiency.”

Preparations for the project included the creation of a hybrid contract that meets the needs of both parties and addresses the potential challenges of doing business in the Basra region. As this is still considered a hostile environment, the two companies placed particular emphasis on security.

By carrying out the main logistical scope for the Basra project, the Jumbo-SAL-Alliance is demonstrating its ability to act as a full-service logistics provider for complex and larger project scopes. Backed by sound in-house engineering, project management, live QHSE procedures and protocols and most importantly, an experienced crew, the Alliance aims to ensure cargo is handled and fastened for safe delivery on time and on budget at sea.

Build the future

JGC is conducting an EPC scope on the refinery upgrade project on behalf of the South Refineries Company, an energy company of the Iraqi Ministry of Oil. The scope of JGC includes the construction of a Fluid Catalytic Cracking Unit (34,500 bpd capacity), a Vacuum Distillation Unit (55,000 bpd) and a Diesel Desulfurization Unit (40,000 bpd).

The new facility will be adjacent to the current Basrah refinery and will provide plant facilities that comply with international environmental standards.
Funding for the project was provided by a loan from the Japan International Cooperation Agency (JICA). It is the largest Japanese-backed reconstruction project since the Iraq war in 2003. It is JGC Group’s second project in the country since the completion of a power plant conversion in 2013.

The upgraded refinery will help close a supply-demand gap for Iraq’s petroleum products and reduce the country’s dependence on imports. It will also contribute to reconstruction and economic growth, not least by creating several thousand jobs both for the construction and for the operation of the refinery.