Iraq’s Ministry of Oil has signed an agreement with Japanese company JGC to restart work on a major refinery project aimed at boosting the country’s fuel production capacity.
According to the ministry, the agreement was reached by a ministerial negotiating committee working under the direction of Oil Minister Bassem Mohammed Khudair Al-Abadi. The committee successfully finalized an arrangement with JGC, the operator of the FCC catalytic cracking project, allowing work on the project to resume on August 10, 2026.
The ministry said JGC has already started moving its staff back to the project site and has begun the necessary preparations to restart operations. The goal is to complete the project and bring it to its full design capacity as quickly as possible.
Once operational, the project is expected to significantly increase Iraq’s domestic fuel production. Officials said it will add around 5 million liters of gasoline per day, nearly 7 million liters of gas oil per day, and about 400 tons of liquefied petroleum gas (LPG) daily.
The project is seen as an important step toward strengthening Iraq’s refining sector, reducing dependence on fuel imports, and meeting growing domestic demand for petroleum products. The additional production capacity is also expected to improve energy security and support the country’s broader efforts to expand and modernize its oil and gas infrastructure.
