Japan and Iraq Mark Major Milestone as Basra Refinery Upgrade Completed

Iraq has taken a major step toward strengthening its domestic fuel production as officials in Basra marked the completion of the multibillion-dollar Basra Refinery Upgrading Project, a landmark modernisation initiative supported by Japan. Prime Minister Mohammed Shia’ Al-Sudani and Japan’s Ambassador to Iraq Akira Endo were among senior leaders attending the ceremony to celebrate the refinery’s transformation into the first facility in Iraq capable of producing cleaner, high-value fuels that meet international environmental standards.

The project, launched in 2012 and financed through concessional Japanese yen loans worth around US$4.8 billion, focused on rehabilitating the Basra Refinery and constructing a new Fluid Catalytic Cracking (FCC) unit. It represents the largest yen-loan project undertaken by Japan in the Middle East, reinforcing the country’s strategic economic cooperation with Iraq.

JGC Corporation led the construction work, integrating advanced refining technology with local expertise from the Ministry of Oil and the South Refineries Company. As a result, the facility has become the first refinery in Iraq capable of producing gasoline, diesel, and other high-value fuels in line with international environmental standards. This shift to cleaner, upgraded fuel products is expected to reduce Iraq’s dependence on imported refined materials, strengthen domestic energy security, and support environmental sustainability.

Japan’s development assistance has played a longstanding role in upgrading essential infrastructure in Basra, including energy, power, and water projects. Officials emphasised that these investments continue to support Iraq’s reconstruction efforts, national economic growth, and improved living standards for Basra’s residents.

The completion of the Basra Refinery upgrade is seen as a major achievement in Iraq-Japan cooperation, marking a significant step forward in modernising Iraq’s energy sector and advancing industrial capacity for the country’s future.

Source: Embassy of Japan in Iraq