Financial Confirmations for Diwaniyah Refinery Expansion Project
The Prime Minister, Muhammad Shi’a Al-Sudani, has announced that adequate financial resources have been secured to initiate the development and expansion of the Diwaniyah refinery. This announcement highlights a significant step in bolstering Iraq’s oil infrastructure.
During a signing ceremony for the contract, which took place on Wednesday, the Prime Minister disclosed that the expansion project comes at a total investment of $800 million. This initiative will enhance the refinery’s capacity by adding an air refining unit capable of processing an additional 70,000 barrels per day, increasing total output to 90,000 barrels per day. The project will also incorporate hydrogen treatment units and additional service components aimed at improving the quality of gasoline, among others.
Al-Sudani emphasized that the Diwaniyah refinery expansion ranks among the most critical strategic initiatives in Iraq’s governmental agenda. The project aims to modernize crude oil refining techniques while adhering to environmental standards and regulatory obligations. This strategic move is intended to maximize output quality and volume of refined oil products.
The Prime Minister reaffirmed the commitment to secure financial allocations necessary for the execution of the project, which is expected to commence within days. He noted that this initiative is crucial not only for the governorate of Diwaniyah—a region with limited strategic developments—but also aligns with the government’s mandate to enhance services and infrastructure.
Moreover, the Prime Minister outlined the broader significance of this expansion in ensuring a stable supply of oil derivatives. The project is designed to support the construction of the Shanafi power station, address local industrial needs, and contribute to job creation within the community.
The scope of the refinery project includes the addition of a liquid gas treatment unit with a capacity of 180 tons per day, hydrogen treatment units capable of processing 18,000 barrels per day, and enhanced gasoline treatment facilities designed to handle 10,000 barrels per day. Additional infrastructure enhancements will feature a facility for the storage and processing of crude oil and products, including a liquid gas cylinder filling lab and a water pumping station drawing from the Euphrates River, equipped with advanced treatment systems for both potable and industrial water.
Project Overview
| Component | Capacity |
|---|---|
| Additional Air Refining Unit | 70,000 BPD (increasing total capacity to 90,000 BPD) |
| Liquid Gas Treatment Unit | 180 tons/day |
| Hydrogen Units | 18,000 BPD |
| Gasoline Improvement Unit | 10,000 BPD |
| Light Naphta Unit | 8,000 BPD |
| Electric Generators | 10 MW/h |
| Nitrogen Production Plant | 1,400 m³/hour |
| Final Product Storage | 90,000 BPD |
This comprehensive infrastructure project is poised to enhance the operational capabilities of the Diwaniyah refinery significantly, respond to local market demands, and contribute positively to the economic landscape of the region.
