Iraq Launches FCC Unit at Al-Shuaiba Refinery

Prime Minister Mohammed S. Al-Sudani inaugurated the new Fluid Catalytic Cracking (FCC) Strategic Unit at the Al-Shuaiba Refinery in Basra Province on Saturday, marking a major milestone in Iraq’s oil industry. The unit, with a processing capacity of 107,000 barrels per day, is expected to significantly increase the production of high-value petroleum derivatives.

The Prime Minister highlighted that the FCC project is a qualitative addition to Iraq’s refining capacity, enabling the country to move closer to self-sufficiency in refined products and expand its export potential. “With this commissioning, Iraq achieves a defining milestone in its oil sector — an accomplishment all Iraqis can take pride in,” he said.

The FCC Unit converts heavy fuel oil from the Basra Refinery into high-octane gasoline, naphtha, diesel, and fuel oil, producing 107,000 barrels per day. It also generates 861 tons per day of gas and sulfur, with an annual production value estimated at 1.632 trillion IQD. Implemented using the latest environmentally friendly technologies, the project complies with Euro 5 standards.

Iraq has already converted 35% of its exported crude into high-value products, targeting 40% by 2030. He added that the project will save $4 billion previously spent on gas imports and 6 trillion IQD on imported petroleum derivatives. The FCC Unit is part of a broader programme of refinery expansions, including the soon-to-be-commissioned Al-Faw Investment Refinery, which will have a capacity of 300,000 barrels per day.

The project was implemented in cooperation with Hyundai Engineering and the Japan International Cooperation Agency (JICA), reflecting continued international collaboration in modernising Iraq’s energy infrastructure. The Prime Minister praised the Ministry of Oil, the Basra Provincial Government, and all personnel involved for their dedication to completing the project.