Najaf Refinery Expansion Set to Boost Iraq’s Fuel Production

Construction has begun on a major expansion of the Najaf Refinery, set to significantly increase Iraq’s domestic refining capacity and reduce reliance on imported fuel. Once completed, the project will add 70,000 barrels per day (bpd) to the existing facility, raising its total capacity to 100,000 bpd.

According to officials, the expansion is expected to be completed within eight months. It forms part of a broader national strategy to strengthen energy security, support local industries, and enable the export of surplus fuel.

The project includes plans to supply asphalt and cement plants as well as power stations across the Middle Euphrates region. In addition to boosting fuel production, the refinery will also contribute to Iraq’s petrochemical aims. Contracts have been signed with investment companies to produce 20,000 bpd of improved gasoline.

Further plans include a partnership with the International Free Company (IFC) to establish a new Linear Alkylbenzene (LAB) plant and facilities for manufacturing industrial derivatives from liquefied petroleum gas (LPG). These will include polypropylene, blended oils, and hydrogenation units capable of producing jet fuel from gas oil and kerosene.

Industry observers note that the expansion could create new job opportunities in Iraq’s oil and petrochemical sectors, while also improving the country’s economy by reducing spending on refined imports.