Downstream
Under an agreement with the Iraqi federal government made in September 2012, the Kurdistan Region is entitled to 17 percent of Iraq’s refined products, and a further 17 percent of Iraq’s crude oil for fueling power stations. However, the federal government does not supply the Region with its full entitlement to refined products.
To meet our domestic demand and help to serve other areas’ needs in the future, the Kurdistan Region is developing the refining sector. With more investments being made, the Kurdistan Region’s refining capacity will be close to 150,000 barrels of oil per day by the end of 2013, up from 100,000 currently.
These investments will help the Kurdistan Region to meet our domestic demand for refined products of 130,000 barrels a day and open up the possibility of serving the needs of Iraq’s neighboring provinces in the future as well.
The Kurdistan Region’s two refineries are owned and operated by the private sector.
Kalak refinery near Erbil city, operated by Kurdish company Kar Group, has a capacity of 80,000 barrels per day currently, with a planned capacity of 100,000 by 2014.
Bazian refinery in Sulaymania governorate, operated by Kurdish company WZA Petroleum, has a capacity of 34,000 barrels per day currently, with a planned capacity of 80,000 by 2014.
In addition, at the Tawke field in Duhok governorate, Norwegian company DNO has a topping plant which prepares crude oil to meet export specifications, with a capacity of 5,000 barrels per day.
International firms are helping the Kurdistan Region’s refineries to upgrade capacity, and it may be possible in the future to increase their complexity so that oil can be converted into lighter products, such as gas or diesel.
Crude oil and gas production will provide ample quantities of feedstock material for future petrochemicals facilities, fertilizer and ammonium plants and other downstream activities. Companies interested in the downstream sector of the Kurdistan Region can contact the Ministry of Natural Resources today.
Amidst its fast development, the Kurdistan region has focused on spreading the benefits to the people of Iraq. The government’s strict non-flaring policy has directed all available gas – associated and non-associated – primarily to the generation of power, making the Kurdistan Region the highest holder of electricity supplies in all of Iraq.
In 2007 the Kurdistan Region’s electricity generation capacity was 482 MW. Today, it is close to 3 GW. Another 3 GW could be added to the power grid in the near future. This increase enables the region to supply power to neighboring governorates and regions. The Kurdistan Regional Government strongly believes that hydrocarbons resources and associated power production should benefit all Iraqis and be used to cement the peaceful and harmonious reconstruction and development of the country, as envisioned by the 2005 Iraqi Constitution. Some $1.5 billion dollars has been invested in power generation in the Kurdistan Region.
While the power stations in the Kurdistan Region are dual-fuel gas turbines that can either run on gas or diesel, the Kurdistan Regional Government has concentrated on gas-fired power stations, as they are the fastest and most efficient means of producing electricity, with gas being supplied from Khor Mor, Khurmala and other fields[??]. This has resulted in a reliable, scalable and fast-track power generation program. With the planned expansion in gas production, other new power stations will be supplied with gas through the growing regional gas grid.
See also the Kurdistan Region's power infrastructure map and power generation figures and forecasts.
As the Kurdistan Region’s downstream industry continues to expand the domestic processing of petrochemicals including ammonia, urea and fertilisers will enhance the local and regional energy trade. Expansion of processing facilities to include these valuable products will contribute to the Kurdistan Region’s future as a fully integrated energy marketplace.