Iraq’s Ambition to Boost Refinery Capacity Moves Closer: Platts

Iraq’s ambitions to expand its refining capacity and shift to exports of higher value products is closer to realisation with two more refineries planned, Platts said.

• Refinery capacity across the whole of Iraq but excluding Kurdistan has reached 1.215m b/d.
• The upcoming projects consist of the Fao Investment refinery with China to add 300k b/d of capacity, and another refinery in Kirkuk to add 150k b/d.
• Iraq also upgraded a gasoil pipeline next to the Basrah refinery linked to Khor Al-Zubair, looking to restart exports for the first time since 2003.
• Iraq’s goal is to become self-sufficient in domestic product demand.
• Iraq is now self-sufficient in gasoil and cut gasoline imports by 50%by March compared to the end of 2023.
• However, with current refineries operating at just 80% of capacity, a further expansion of capacity looks unlikely, Platts said.
• Iraq’s refined product exports hit a record 701k b/d in May.

Source: S&P Global Commodity Insights