Iraq Expands Diwaniyah Refinery with $800 Million Development Project
On Wednesday, Iraq formalized a significant contract aimed at the development and expansion of the Diwaniyah refinery, with a projected investment of $800 million. This initiative will include the addition of a new refining unit capable of processing 70,000 barrels of crude oil per day.
The project, endorsed by Prime Minister Mohammed Shi’a Al-Sudani, is recognized as a critical component within the government’s strategic objectives to enhance the oil sector. A formal statement emphasized that the Diwaniyah refinery’s development aligns with modern technical techniques for crude oil refining while strictly adhering to environmental regulations concerning waste management, which includes liquid, solid, and gas by-products.
The Prime Minister underscored the importance of securing adequate financial resources for the execution of the project, which is set to commence shortly. This initiative is anticipated not only to bolster the strategic infrastructure of the Diwaniyah governorate, which has historically lacked such projects but also to enhance the delivery of essential services throughout the region.
Furthermore, the expansion is poised to play a pivotal role in securing domestic oil derivatives, augmenting the construction of the Shanafi power station, and fulfilling the needs of local industries and markets, which will subsequently create job opportunities.
The announced project will encompass several key enhancements, including the installation of a liquid processing unit with a capacity of 180 tons per day, hydrogenation units with a capacity of 18,000 barrels per day, and improvements to gasoline production with a capacity of 10,000 barrels, complemented by additional necessary infrastructure.
Moreover, the development plan incorporates a nitrogen production facility with a capacity of 1,400 cubic meters per hour, initial water treatment processes, reverse osmosis water desalination units, industrial water treatment systems, caustic soda preparation units, as well as the requisite civil engineering works.
This strategic initiative contributes significantly to Iraq’s overarching goal of advancing its oil industry while ensuring sustainable environmental practices and boosting local economic growth.