Glencore, Trafigura and IPG all supplied gasoline to Iraq under contracts last year. For the first half of 2010 Iraq agreed to pay a premium of $13 a ton to the Platts Mediterranean gasoline benchmark, an official at the Oil Ministry said then.
Iraq, like other Persian Gulf oil producers and exporters, imports refined products like motor fuel since it lacks the capacity to produce enough at home.
The country’s refineries in Baghdad’s Dora [Doura, Daura] district, in the southern region of Basra, and in the northern city of Baiji, have a combined theoretical capacity of about 700,000 barrels a day. In practice, they produce less fuel than that because of wartime damage and are unable to meet domestic fuel demand of about 600,000 barrels a day, according to a U.S. Energy Department report.
Iraq consumed 638,000 barrels a day of oil products in 2008, up from 596,000 barrels daily in 2007, according to the Energy Department’s Energy Information Administration. Iraq plans to build four refineries to add 750,000 barrels of daily capacity in Kirkuk, Maysan, Nassiriyah and Karbala.
(Source: Bloomberg)
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