Page 4 - DMEA Week 02 2023

DMEA COMMENTARY DMEA

Iraq prepares for

refining renaissance

Progress is being made towards the commercial launch of the Karbala refinery
while Japanese financing paves the way for expansion at a major southern plant

MIDDLE EAST FOLLOWING years of underinvestment, gradually to reach design capacity by the end of
attacks and chronic decay, Iraq’s refining sector July.
is set for a significant resurgence as two major Elaborating on the product slate, Abdulghani
WHAT: projects move towards fruition. said “the refinery’s production is of high-octane
Commercial operations at The Karbala oil refinery will begin com- gasoline with a degree of 95, with a capacity
Karbala are set to launch mercial production operations in mid-March, ranging between 8-9mn litres per day, and it can
in March, with the facility according to comments this week from Oil Min- be increased to 12mn litres after the process of
the only one of four ister Hayan Abdulghani. Meanwhile, a fourth mixing it with the naphtha produced from the
originally envisaged in tranche of financing was agreed for the Basra refinery.
plans announced in 2007. Refinery Upgrading Project (BRUP) which will Karbala will comprise 35 operational and
expand capacity at the facility, operated by the service units, including four gasoline production
WHY: state-owned South Refineries Co. (SRC). units, a thermal cracking unit, a poly-naphtha
The plant will cater to unit to produce octane 95 and 90 fuels as well as
as much as 75% or Karbala commerciality 44 storage tanks. Gasoline-producing units have
Iraqi demand and will Speaking to official state media, Abdulghani already been completed
potentially offer products said following a visit to the refinery that will be It is expected to produce LPG, gasoline, gas
for export. operated by the state-owned Midland Refin- oil, fuel oil, jet fuel and asphalt to meet interna-
eries Co., he said that commercial production tional standards.
WHAT NEXT: would begin in March at 70,000 barrels per day Plans to develop a greenfield refinery at
Another tranche of (bpd), expanding to its full design capacity a few Karbala have been on the drawing board since
Japanese financing has months later. 2007, when Baghdad launched a downstream
been agreed for the “I saw the primary products after the trial development programme comprising four new
expansion of the Basra operation of the first unit of the refinery with a plants across the country. Of these, only Karbala
refinery. capacity of 70,000 barrels, including gasoline, has reached the construction phase following the
kerosene, and kerosene, and it was according MoO’s reversion to an engineering, procurement
to the required and planned specifications,” he and construction (EPC) contract and its award
said. He added that throughput would increase to a South Korean consortium, led by Hyundai

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