At a Glance

• Iraq's Oil Ministry reached an agreement with Japan's JGC Corporation to resume the Fluid Catalytic Cracking (FCC) project at Shuaiba refinery.
• The initiative is slated to restart operations on August 10, 2026, with the company mobilizing personnel to Basra.
• Project outputs will boost daily production by 5 million liters of gasoline, 7 million liters of gasoil, and 400 tons of liquefied petroleum gas (LPG).
• The agreement targets enhanced domestic self-sufficiency and improved fuel quality across national markets.

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In a statement, sources confirmed that the Iraqi Oil Ministry signed an agreement with the Japanese firm to advance domestic fuel refining capacities, with project work officially resuming at the Shuaiba refinery in Basra.

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Key Statements and Focus Area

• Technical Modernization: The FCC project utilizes advanced petroleum refining processes to convert heavy hydrocarbons into high-value light fuels under the supervision of the South Refineries Company and ministry advisors.
• Operational Mobilization: JGC Corporation has initiated the transfer of engineering staff and equipment preparation to the site following successful ministerial committee negotiations.
• Strategic Objective: The expansion aims to systematically reduce reliance on imported petroleum products by meeting stringent local energy demands.

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The resumption of the project addresses long-standing infrastructure bottlenecks within Iraq's refining sector, where high domestic demand during peak seasons exerts pressure on public supplies. By modernizing processing units in southern production hubs, federal authorities expect to stabilize domestic distribution networks and decrease financial expenditures on foreign fuel imports.

FYI

The Fluid Catalytic Cracking (FCC) process is a cornerstone of modern petroleum refining, breaking down heavy, high-boiling petroleum fractions into more valuable gasoline, olefinic gases, and other products. Implementing this technology at facilities like the Shuaiba refinery allows Iraq to extract higher economic value from its crude oil resources domestically.

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