Iraqi Kurdistan officials order crackdown on illegal refineries over pollution

Local authorities in the Erbil governate of Iraq's semiautonomous Kurdistan region have shut 138 illegal topping plants and ordered dozens of licensed refineries to implement environmental protection requirements or face closure.

The move was prompted by complaints of pollution and worsening air quality in the Kurdistan capital of Erbil, local media reported Aug. 4.

It also comes amid a surge in the black market trade in crude and refined products in Kurdistan, since the closure of the region's main export pipeline to the Turkish port of Ceyhan in March 2023.

S&P Global Commodity Insights previously reported the rise of hundreds of small refineries, including simple topping plants, many of which are illegal, which now benefit from landlocked Kurdish crude that is sold at a major discount to international prices. Kurdish crude production has now rebounded to as high as 300,000 b/d from nearly zero when the pipeline was shuttered, sources have told Commodity Insights.

Besides emissions from the facilities, the trade in local crude and refined products has also resulted in greatly increased road traffic from trucks carrying the oil, prompting local protests over safety and pollution. The topping plants usually produce fuel oil and low quality gasoil that is sold locally and delivered by truck to traders in Iran and Turkey.

In June, a massive fire broke out at an oil refinery located on the Erbil-Gwer road.

The licensed refineries in Erbil will be given a grace period of 10 days to adhere to environmental requirements and rectify all violations, or they will be legally charged, Erbil Governor Omed Khoshnaw said in a press briefing. Associated industries, such as tar manufacturers and electricity generators, are also required to clean up their operations and their owners will face arrest if they use "bad" gasoil.

The governor threatened to arrest the owners of these plants "after increased complaints of smoke [and] fog that engulfs and chokes."

A committee has been formed under the chairmanship of the deputy governor to protect Erbil's environment and to follow up and monitor the implementation of these guidelines and decisions.

Kurdistan Regional Government authorities could not be reached for comment on whether it is searching for additional illegal refineries or cracking down on illicit fuel trade.