Iraq's gasoline imports likely to drop as refinery projects wrap up: minister

Iraq's gasoline imports are projected to drop to 2,000–3,000 cu m/d, down from over 16,000 cu m/d in previous years, Oil Minister Hayan Abdul Ghani said in a June 9 statement.

In line with falling imports, annual spending on gasoline, gasoil and kerosene has fallen below $1 billion from $5 billion two years ago.

As progress continues on the South Refineries Company (SRC) fluid catalytic cracker project in Basrah, that spending is expected to be eliminated by the end of the year.

Ghani also highlighted the role of the Karbala refinery in boosting domestic output, contributing 8,000 to 9,000 cu m/d of gasoline and reducing imports already to 4,000-5,000 cu m/d.

Ghani pointed to the upgrade progress at the Kirkuk refinery, which is expected to begin trial production soon with a daily output of no less than 1,600 cu m of high-quality gasoline, the minister said. The refinery commenced test runs of the gasoline complex in late May.

The upgrade includes boosting nameplate capacity at the Kirkuk refinery by 12,000 b/d and includes three hydrogenation and gasoline improvement units, as well as an isomerization and reformate unit, according to a statement from May by a deputy oil minister. It aims to produce high-quality, environmentally friendly gasoline to Euro-5 standard to meet local demand, the statement added.

The Kirkuk refinery is made up of four basic units, with three 10,000-b/d facilities and one unit of 16,000 b/d, making a total of 56,000 b/d. It currently produces middle distillates and naphtha plus fuel oil.

Iraq achieved self-sufficiency in gasoil and kerosene in early 2024 and is now looking to become more self-reliant on gas.

Currently, Iraq imports gas for power supply from neighboring Iran. That gas is subject to US sanctions waivers, which the US has recently threatened to end in a bid to wean Iraq off dependence on Iran.