The Iraqi government has launched a major upgrade to the Diwaniyah refinery. The new project adds a refining unit that processes 70,000 barrels per day. This expansion will raise the total refinery capacity to 90,000 barrels per day.
Oil Minister Hayan Abdul-Ghani confirmed the news during a recent announcement. As well as he said the expansion will help Iraq meet local fuel needs. It also supports the long-term goal of reaching fuel self-sufficiency.
The Diwaniyah refinery upgrade forms part of Iraq’s national energy strategy. The government wants to modernize oil facilities across the country. With this expansion, Iraq moves closer to that goal.
The five-year project costs $800 million. It includes advanced equipment and new fuel processing units. Among these are systems for liquefied gas, naphtha hydrotreating, gasoline improvement, and isomerization.
Construction teams have already begun laying the groundwork for the expansion. Once finished, the Diwaniyah refinery will offer higher output and cleaner fuel. So officials expect this to benefit both local markets and the national economy.
In February, Prime Minister Mohammed Shia Al-Sudani took part in a key signing event. The state-owned Midland Oil Company and a local private partner agreed to carry out the expansion. The Diwaniyah refinery will play a larger role in Iraq’s refining network after the upgrade.
The new refining capacity will also reduce the need for fuel imports. As a result, Iraq can cut costs and redirect funds into other energy projects.
The Diwaniyah refinery expansion is not just about numbers. It reflects a deeper shift in Iraq’s oil policy. The country aims to increase efficiency, meet domestic demand, and lower emissions over time.
More refining power also means more jobs and economic growth in Diwaniyah province. In addition Local officials have voiced strong support for the project.
As Iraq increases refining output, the Diwaniyah refinery stands as a model for future upgrades. As well as The government hopes this effort will inspire similar projects across other provinces.
By investing in the Diwaniyah refinery, Iraq shows commitment to energy independence. The nation is working hard to build a modern and self-reliant oil sector.