Baghdad-KRG Refining Deal Eases Light Products Shortfall

Federal Iraq’s refining runs are at near-record levels despite offline capacity thanks to a KRG processing deal. Fuel oil exports have resumed as Iraq cuts crude exports by slashing fuel oil blending with an eye on Opec production compliance.

Federal Iraq is running its 10 operational refineries flat out as the Ministry of Oil seeks to reduce reliance on imports of gasoline and diesel in the face of rising consumption. MEES estimates operational federal refining capacity is 576,000 b/d, with 344,000 b/d offline due to attacks from the Islamic State (IS).

But refinery throughputs averaged 591,000 b/d in April, according to the latest information submitted by the ministry to the Riyadh-based Joint Organizations Data Initiative (Jodi). This is the highest monthly level since the 600,000 b/d reported in May 2014, the month before the onset of fighting between IS and federal forces in which Iraq’s largest refinery, 310,000 b/d Baiji, was destroyed. (CONTINUED - 720 WORDS)

DATA INSIDE THIS ARTICLE

chart 1: Federal Iraqi Refinery Runs Edging Up From Late 2016
chart 2: Iraq* Fuel Oil Output At Highest Level Since 2014 (‘000 B/D) With Fuel Oil Exports Prioritized Over Blending With Crude
chart 3: Iraq* Gasoline Demand (‘000 B/D): Despite Rising Output Almost 60% Is Now Met By Imports
chart 4: Diesel (‘000 B/D): Increased Refinery Output* Has Led Imports To Fall From Record 2015-16 Levels