Iraq signs $800 million contract to expand Al-Diwaniyah refinery

Iraq signs $800 million contract to expand Al-Diwaniyah refinery
2025-02-05T15:17:21+00:00

Shafaq News/ Iraq signed an $800 million contract on Wednesday to develop the Al-Diwaniyah refinery.

PM Mohammed Shia Al-Sudani who oversees the signing ceremony for the development and expansion said, “The project includes the addition of an atmospheric distillation unit with a capacity of 70,000 barrels per day (BPD), bringing the total production capacity to 90,000 BPD. It also incorporates hydrocracking units, gasoline upgrading, isomerization, and other essential service units.”

The project, a key component of Iraq’s strategic development plan, aims to utilize advanced technology in crude oil refining while adhering to environmental regulations concerning liquid, solid, and gaseous waste. It is part of the government's efforts to “modernize the oil industry, enhance product quality, and increase production capacity.”

According to Al-Sudani, the financial allocations for the project have been secured, and the executing company is set to commence operations within days.

The Iraqi Prime Minister also pointed out the project’s role in securing petroleum products, supporting the completion of the Al-Shanafiyah power plant, meeting industrial and market demands, and creating job opportunities.

“The project includes the addition of a liquefied gas processing unit with a capacity of 180 tons per day, a naphtha hydro-treating unit with a capacity of 18,000 BPD, a gasoline upgrading unit with a capacity of 10,000 BPD, and a naphtha isomerization unit with a capacity of 8,000 BPD. Additionally, it features power generators with a capacity of 10 megawatts per hour, along with other essential units.”

The project also features a nitrogen production plant with a capacity of 1,400 cubic meters per hour, a storage facility for final products with a capacity of 90,000 bpd, and 24 tanks for crude oil and refined products. It includes a bottling plant for liquefied gas, a water pumping station from the Euphrates River with a primary water treatment unit, reverse osmosis (RO) water purification units, industrial wastewater treatment facilities, caustic soda preparation units, as well as all necessary civil works and infrastructure.

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