Baghdad: The Ministry of Oil signed an agreement on Friday with Japan’s JGC to enhance the production capacities of gasoline, gas oil, and liquefied gas.

According to Iraqi News Agency, the ministry stated that the ministerial negotiating committee, under the follow-up and direction of Oil Minister Bassem Mohammed Khudair Al-Abbadi and headed by the ministry’s adviser Hamed Younis, with participation from Southern Refineries Company Director General Hossam Hussein Wali, successfully reached an agreement with Japan’s JGC. JGC, the operator of the FCC catalytic cracking project, is set to resume work on the project on August 10, 2026.

The ministry further noted that JGC has commenced the transfer of its personnel to the project site and has begun resuming operational work and the necessary preparations for the units’ operation. This initiative aims to complete the project and operate it at its designed capacity.

The project is expected to significantly contribute to the country’s fuel production capabilities, adding an additional 5 million liters per day of gasoline, approximately 7 million liters per day of gas oil, and 400 tonnes per day of liquefied petroleum gas (LPG).