Baghdad,Iraq- Iraq has signed an $800 million contract to develop and expand the Al-Diwaniyah refinery, a move aimed at enhancing the country’s refining capacity and modernizing the oil sector.
Prime Minister Mohammed Shia Al-Sudani, who oversaw the signing ceremony, stated that the project involves adding a new atmospheric distillation unit with a capacity of 70,000 barrels per day (BPD), increasing the refinery’s total production capacity to 90,000 BPD. The expansion will also include hydrocracking units, gasoline upgrading, isomerization, and other essential service units.
The development is a key part of Iraq’s strategic plan to utilize advanced crude oil refining technology while adhering to environmental regulations concerning liquid, solid, and gaseous waste. The government aims to improve product quality, increase production capacity, and modernize the oil industry through this initiative.
According to Al-Sudani, financial allocations for the project have been secured, and the executing company is set to begin operations within days. He also highlighted the project’s role in securing petroleum products, supporting the Al-Shanafiyah power plant, meeting industrial and market demands, and creating job opportunities.
The refinery expansion includes a liquefied gas processing unit with a capacity of 180 tons per day, a naphtha hydro-treating unit with a capacity of 18,000 BPD, a gasoline upgrading unit with a capacity of 10,000 BPD, and a naphtha isomerization unit with a capacity of 8,000 BPD. It will also feature power generators with a capacity of 10 megawatts per hour and other essential infrastructure.
Additionally, the project will establish a nitrogen production plant with a capacity of 1,400 cubic meters per hour, a storage facility capable of holding 90,000 BPD of final products, and 24 tanks for crude oil and refined products. It will also include a bottling plant for liquefied gas, a water pumping station sourced from the Euphrates River, a primary water treatment unit, reverse osmosis (RO) purification units, industrial wastewater treatment facilities, and caustic soda preparation units, along with necessary civil works and infrastructure.
