KARBALA: Iraq has opened a new oil refinery in the city of Karbala, which is expected to help reduce the country’s dependency on energy imports. The refinery, which has a capacity to refine 140,000 barrels per day, was built by South Korean company Hyundai and will produce petrol, kerosene and heating oil.
Oil Minister Hayan Abdel Ghani said the facility can produce nine million litres of fuel per day, equivalent to over half of Iraq’s daily imports of 15 million litres.
The refinery will also generate 200 megawatts of electricity, with 60 megawatts allocated to the national grid. Iraq, OPEC’s second-largest producer, exports around 3.3 million barrels of oil per day, which represents about 90% of the government’s revenue.
The Karbala oil refinery project was first proposed in 2012 and construction began in 2016. It was initially expected to be completed in 2018, but the project faced several delays and setbacks.
Oil refinery to boost Iraq’s production
The refinery is located about 120 kilometers (75 miles) south of Baghdad and covers an area of 6 million square meters. It is one of four new refineries planned for Iraq as part of a strategy to boost domestic refining capacity and reduce reliance on imports.
The Karbala refinery will process crude oil from the nearby Nassiriya and Gharraf oil fields and is expected to create jobs for around 10,000 people.
Iraq is one of the world’s largest oil producers, with estimated reserves of 153 billion barrels. However, decades of conflict, mismanagement, and corruption have hindered its ability to develop its oil sector and other industries.
The inauguration of the Karbala refinery comes as Iraq is facing mounting pressure to reduce its greenhouse gas emissions and shift towards cleaner energy sources.
The country has been hit hard by the impacts of climate change, including desertification, water scarcity, and extreme weather events.
