Iraq starts building new oil refinery

Associated Press

BAGHDAD (AP) — Iraq has held a ceremony marking the start of construction of a large oil refinery aimed at meeting increasing demand for refined products.

Oil Ministry spokesman Assem Jihad said Saturday that a Korean consortium led by Hyundai Engineering & Construction will build the 140,000 barrels-per-day refinery in the central province of Karbala over a 54-month period. Four other Korean companies have teamed up with Hyundai.

Jihad added that the engineering, procurement, and construction deal is valued at $6.04 billion. He said the refinery will produce gasoline, gas oil, fuel gas, liquefied gas, jet fuel, and asphalt.

The refinery is one of four new sites Iraq plans to build to boost refining capacity by 750,000 barrels per day.