South Korea’s Hyundai Engineering & Construction (Hyundai E&C) has completed major construction work and started commissioning at Iraq’s Basra Refinery Upgrade Project. The company confirmed that the refinery has successfully produced gasoline for the first time, marking a significant step toward Iraq’s refining modernization goals.
Therefore, the upgraded unit at the Basra refinery can produce 24,000 barrels of gasoline per day using residual oil. This achievement highlights Iraq’s progress in improving energy self-sufficiency and refining efficiency. The milestone also supports the country’s plan to reduce fuel imports and strengthen domestic production.
The $1.5 billion Basra Refinery Upgrade Project was awarded in 2020. Hyundai E&C partnered with Japan’s JGC Corporation to execute the project under a lump-sum turnkey contract. The scope covered design, procurement, construction, and commissioning activities. Both companies ensured timely completion despite challenging global and regional conditions.
Once the new facility becomes fully operational early next year, it is expected to reduce Iraq’s reliance on imported gasoline. It will also boost refining profitability and increase the overall output of high-value petroleum products. Officials noted that the project directly supports Iraq’s long-term strategy for energy independence and industrial growth.
Hyundai E&C emphasized that it completed the five-year construction phase with zero safety incidents. The company maintained strict international standards in quality, safety, and environmental compliance throughout the project’s execution. This record reflects Hyundai’s commitment to excellence and its ability to manage large-scale industrial projects in complex environments.
In a statement, Hyundai E&C said that Iraq’s recent award of the Water Infrastructure Project (WIP) demonstrates continued trust in its technical capabilities. The firm views this as a sign of its deepening relationship with Iraq’s energy and infrastructure sectors.
Since 1978, Hyundai E&C has completed around 40 national projects in Iraq, with a total value of approximately $12 billion. These include the Karbala Refinery, power stations, and railway developments such as the Northern Railway. The Basra Refinery Upgrade Project now joins this long list of successful ventures that have helped strengthen Iraq’s industrial foundation.