Iraq’s New Karbala Refinery Set To Lighten Summer Fuel Import Bill

21 Apr 2023 Issue: 66 / 16 By: Yesar Al-Maleki

Baghdad expects to slash its fuel import bill as the country’s newest and most advanced refinery at Karbala ramps up to full capacity by July. If things go to plan, imports of gasoline and diesel will be significantly reduced and possibly eliminated.

The 140,000 b/d greenfield Karbala refinery is providing the first significant modern addition to Iraq’s delipidated refining fleet since at least the 1980s. Nine-years after its 2014 award to a consortium led by Korea’s Hyundai Engineering (MEES, 10 January 2014), the plant began commercial operations earlier this month (MEES, 7 April).

Full capacity is targeted by July, and oil minister Hayan Abdulghani says that the $6bn refinery’s gasoline and middle distillate output will help Iraq slash its fuel import bill. Soaring prices pushed the tab up to a record $5.3bn last year. Mr Abdulghani hopes that Karbala will bring this down to just $500mn-$1bn helped in part by lower oil prices, though the net gains to Iraq will be substantially lower given that exports of crude as well as low-value naphtha are set to fall as the refinery ramps up. (CONTINUED - 996 WORDS)