Al-Sudani inaugurates major refinery unit in Basra to boost fuel production

BASRA — Prime Minister Mohammed Shia Al-Sudani on Saturday inaugurated the Fluid Catalytic Cracking Strategic Unit Project at the Al-Shuaiba Refinery in Basra, a facility with a processing capacity of 107,000 barrels per day.

“This project constitutes a qualitative addition to Iraq’s refining capacity,” Al-Sudani said at the ceremony. He added that the new unit would help Iraq achieve self-sufficiency in petroleum products and move toward exporting refined fuels.

The FCC unit converts heavy fuel oil from the Basra Refinery into high-octane gasoline, naphtha, diesel, and fuel oil, with an estimated annual value of 1.63 trillion dinars. It also produces 861 tons of gas and sulfur per day.

Al-Sudani said the new unit, along with other refinery development projects, is expected to save about $4 billion in gas import costs and 6 trillion dinars in spending on petroleum derivatives.

He criticized previous administrations for failing to modernize the sector, saying, “For two decades, successive governments failed to plan scientifically and responsibly.”

The Basra refinery expansion is part of Iraq’s broader strategy to reduce dependence on imported fuel and strengthen its refining infrastructure amid rising domestic energy demand.

Statement from Al-Sudani’s media office:

Prime Minister Mohammed S. Al-Sudani inaugurated today, Saturday, the Fluid Catalytic Cracking (FCC) Strategic Unit Project at the Al-Shuaiba Refinery in Basra Province, with a capacity of 107,000 barrels per day.

In his remarks during the inauguration, the Prime Minister stated that this project constitutes a qualitative addition to Iraq’s refining capacity and the production of high-value petroleum derivatives. He emphasized that, together with other refinery expansion projects, it will enable Iraq to achieve self-sufficiency and transition toward exporting refined products.

Below are the key highlights from the Prime Minister’s remarks:

🔷 With its commissioning, this project marks a defining milestone in the history of Iraq’s oil industry, an achievement that all Iraqis can take pride in.

🔷 The government program has given special focus to expanding Iraq’s refining capacity and strengthening the production and export of petroleum derivatives.

🔷 We have set a clear goal to convert 40% of Iraq’s exported crude oil into high-value products by 2030, and we have already achieved 35% of this target.

🔷 The oil sector was previously in a state of deterioration, with aging refineries and a single export outlet dating back to the 1970s.

🔷 Within a short period, and through the dedication of our oil sector workforce, we have successfully launched numerous refinery expansion and modernization projects.

🔷 Our plan will save $4 billion previously allocated for gas imports and 6 trillion IQD that was spent on importing petroleum derivatives.

🔷 For two decades, successive governments failed to plan scientifically and responsibly for the advancement of the refining and petroleum products sector.

🔷 This project is the result of close cooperation between Iraq, Hyundai Engineering, and Japan International Cooperation Agency (JICA).

🔷 Al-Faw Investment Refinery, with a capacity of 300,000 barrels per day, will soon commence operations.

🔷 The project was implemented using the latest environmentally friendly technologies, in full compliance with Euro 5 standards.

🔷 I commend all those who contributed to the implementation of this project, the staff of the Ministry of Oil and the Basra Provincial Government, represented by the Governor.

The Fluid Catalytic Cracking (FCC) Unit at Al-Shuaiba Refinery utilizes heavy fuel oil from the Basra Refinery and converts it into high-value petroleum derivatives. It produces 107,000 barrels per day of high-octane gasoline, naphtha, diesel, and fuel oil, with an annual value estimated at 1.632 trillion IQD, in addition to 861 tons per day of gas and sulfur.