Iraq's Oil Refining Capacity Surges to 1.1 Million bpd, but Domestic Demand Struggles Persist
Shafaq News/ According to the International Energy Agency (IEA), Iraq's oil refining capacity has notably increased, reaching 1.116 million daily barrels in 2022, significantly improved from the previous year when the total stood at 976 thousand barrels per day. The rise in capacity can be attributed to the completion and operationalization of the Karbala refinery.
The Iraqi government manages all refineries, divided among three entities: the North, Central, and South Refineries Company.
The North Refineries Company operates refineries with a total capacity of 272 thousand barrels per day, with the Al-Sumoud refinery (formerly known as the Baiji refinery) being the most prominent, producing 140,000 barrels per day.
The central refineries, with a capacity of 360,000 barrels per day, include the Dora refinery as the key facility, producing 140,000 barrels daily. The South Refineries Company has 280,000 barrels per day, with the Basra refinery being the leading facility, producing 210,000 barrels per day.
Additionally, the Kurdistan region houses other refineries, with the Bazian refinery being the most significant, boasting a capacity of 40,000 barrels per day.
Despite the increase in refining capacity, Iraq still faces challenges in meeting domestic oil product demands, resulting in an annual cost of approximately $5 billion. Gasoline and diesel shortages account for $3.5 billion of this total deficit.
