Iraq’s Karbala Refinery to Hit Full Capacity by July

SEATTLE (Oil Monster): According to sources, Iraq’s Karbala refinery in South Karbala province is set to reach full capacity of 140,000 barrels per day by July this year. The refinery will commence commercial production by mid-March. Initially, there will be a test run at 60% capacity for a period of three months.

RELATED NEWS:

Pemex Olmeca Oil Refinery to Reach 50% Capacity by Mid-2023

Saudi Aramco and Sinopec to Build Oil Refinery Complex in China

It must be noted that Karbala refinery is the country’s first new refinery in decades. It was initially due on steam in 2018. However, the project got delayed due to financial pressures, especially when the oil prices hit new lows during the pandemic time. The refinery will produce Grade 95 high-octane gasoline, LPG, jet fuel, gasoil, fuel oil, and asphalt for domestic consumption. At full capacity, it is expected to cover up to 75% of the country’s total domestic consumption.

The proposed startup of the refinery is unlikely to affect southern crude exports by the country. The country could cut crude throughput at other refineries or boost oil production, sources said. Incidentally, Iraq, the second largest crude oil producer among OPEC countries, has exported approximately 3.24 million bpd of crude from its southern port of Basra in December.

The country’s oil revenues had totalled $75.6 billion in 2021.