IRAQ - Refining & Petrochemical Sectors.

One of the top priorities for the newly elected Iraqi government is to increase the country's oil refining capacity. Despite a nameplate capacity of more than 650,000 b/d, the eight working refineries have been struggling to produce more than 500,000 b/d, while domestic demand is much higher forcing the government to import 270,000 b/d of gasoline and other refined products at the cost of about $250m per month.

The country's current refining capacity was more than sufficient during the Baathist regime. But the number of cars on the Iraqi roads has risen rapidly in the past two years of the US-led foreign occupation. This, combined with rising power demand, has highlighted the refining sector's deficiencies.