Oil: We will stop importing 60% of our gasoline needs in 2023

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[size=52]Oil: We will stop importing 60% of our gasoline needs in 2023[/size]

[size=45]Translated by: Hamed Ahmed[/size]
[size=45]The Ministry of Oil stated that Iraq will stop importing 60% of its needs for gasoline and diesel next year, expressing its aspiration to develop the refinery and refining sector despite the security, health and financial challenges.[/size]
[size=45]A report by Al-Monitor, translated by Al-Mada, stated, “During his visit to the South Refineries Company on the fourth of this month, the new Minister of Oil, Hayan Abdel-Ghani, revealed his ministry’s policy of focusing on doubling the company’s oil refining capacity to reach 350,000 barrels per day, with the aim of being self-sufficient. of oil products and reduce their import.[/size]
[size=45]Abdul-Ghani said, "The southern refineries are today one of the largest Iraqi refineries in terms of production and the proportion of the great work they do to meet the needs of citizens and consumers of oil products."[/size]
[size=45]Abdel-Ghani pointed out that "the workers in the southern refineries were at the level of responsibility through their distinguished efforts to continue work and production, despite the challenges and the health and economic crisis that the country faced in the previous period."[/size]
[size=45]Abdul-Ghani stressed, "Continuing to support all southern oil refineries to meet the goals set for these refineries to reach the stage in which Iraq no longer needs to import oil derivatives."[/size]
[size=45]And the report continued, “The oil refineries in Iraq suffer from major problems; As a result of its dilapidated situation and the lack of huge investments in this sector.[/size]
[size=45]He explained, "This caused the country, which is the second largest oil producer in the Organization of Petroleum Producing Countries (OPEC) with its production of 4.6 million barrels per day, to import most of its needs of fuel and oil products," noting that "half of the quantities produced by Iraqi refineries are currently They are fuel oils.[/size]
[size=45]And the report continues, “Iraq spends more than $3 billion annually on importing oil products, including 1.07 million tons of gas oil at a value of $657 million, 3.46 million tons of gasoline at a value of $2.5 billion, and 163,000 tons of white oil at a value of $102 million.” dollar".[/size]
[size=45]And he added, "The Ministry of Oil conducted, on the twentieth of last month, tests on units in the Karbala refinery, hoping that the refinery will start production during the first quarter of 2023."[/size]
[size=45]"The Ministry of Oil is looking forward to developing the refinery and refining sector, despite the security, health and financial challenges it faces," said the official spokesman for the Ministry of Oil, Assem Jihad.[/size]
[size=45]Jihad continued, "The ministry has completed the construction of the Karbala refinery, and is currently working on completing the Al-Faw refinery, while developing other refineries."[/size]
[size=45]Jihad pointed out that "Iraq will stop importing 60% of its needs of gasoline and diesel during the next year."[/size]
[size=45]Jihad talked about “investing this money in developing other sectors of the economy,” stressing that “the Karbala refinery will provide raw materials for secondary industries of oil products.”[/size]
[size=45]In turn, the director of the Karbala refinery, Muhammad Fazaa, said, "The cost of establishing the refinery amounted to 6.5 billion dollars, and it extends over an area of ​​​​6 million square meters (1.5 million hectares), with a refining capacity of 140 thousand barrels per day."[/size]
[size=45]Fazaa added, "80% of the crude oil will be refined, as it will produce light and high-quality products."[/size]
[size=45]Fazaa indicated, "The refinery will produce 9 million liters of high-octane gasoline, 3 million liters of jet fuel, 4 million liters of diesel oil, and 1,500 cubic meters of cooking gas."[/size]
[size=45]Fazaa stated, "The amount of production in the first phase of operation will be at a rate of 85,000 barrels per day," expecting that "it will reach its maximum capacity in the second phase."[/size]
[size=45]The report stated, "The Baiji refinery in Salah al-Din Governorate, which is considered the largest refinery in Iraq, was destroyed after it was taken over by the terrorist organization ISIS, when it was producing 300,000 barrels per day."[/size]
[size=45]He pointed out, "There are more than 15 refineries in Iraq, including those in the Kurdistan region, with a total refining capacity of more than one million barrels per day."[/size]
[size=45]The report indicated, "Iraq currently consumes 32 million liters of petrol per day and 25 million liters of diesel, according to the Directorate of Petroleum Products Distribution."[/size]
[size=45]He stressed, "The deficit in the domestic need, which amounts to more than 21 million liters per day, is covered by import."[/size]
[size=45]And the report continues, “Iraq spent during the first quarter of this year 1.5 billion dollars on the cost of importing fuel.”[/size]
[size=45]He added, "The list may reach $6 billion by the end of the year," adding that "the country previously spent $3 billion annually on fuel imports," and attributed that to "high prices in the global market resulting from Russia's war in Ukraine."[/size]
[size=45]The Iraqi researcher in the field of energy, Yasser Al-Maliki, said, "Iraq is suffering from high fuel prices in the global market."[/size]
[size=45]Al-Maliki continued, "The operation of the Karbala refinery helps reduce imports, but it does not achieve self-sufficiency."[/size]
[size=45]Al-Maliki noted that “the refining sector in Iraq is still weak; Because of the government's economic policies.[/size]
[size=45]Al-Maliki stressed that "foreign investors cannot invest their money in the refining sector and establish a billion-dollar refinery at a time when the state sells fuel at a subsidized price."[/size]
[size=45]The report went on to say that “the price of fuel in Iraq is very cheap; As a result of government support,” noting that “the government imports one liter of gasoline for one dollar, and sells it to the citizen at a subsidized price of 0.45 cents, which led to attempts to smuggle it to neighboring countries.”[/size]
[size=45]And the researcher Al-Maliki goes back to saying, “The problems of falling oil prices and high financial allocations to the public sector made the state focus mainly on securing employee salaries instead of paying attention to developing the refining sector.”[/size]
[size=45]And the report stated, “Iraq’s current plan for the oil sector includes focusing on investment in the field of associated oil gas for the purpose of operating electric power plants.”[/size]
[size=45]And he added, "Although Iraq offered several investment opportunities in the refining sector, such as the Dhi Qar and Maysan refineries, it failed to attract investors."[/size]
[size=45]And the report concluded, that "this concludes from it, that Iraq will continue to import fuel over the next ten years."[/size]
[size=45]About: Al-Monitor news website[/size]
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