Local authorities in the Erbil governorate, in the semi-autonomous Kurdistan region of Iraq, are taking tough measures to combat the pollution caused by illegal refineries.
138 illegal topping facilities have been closed down, and many other refineries must comply with environmental standards or face closure.
These actions are in response to growing complaints about air quality in Erbil.
The situation has worsened since the closure of the main export pipeline to the Turkish port of Ceyhan in March 2023, fuelling the black market in crude oil and refined products.
Refinery proliferation and the black market
S&P Global Commodity Insights reports an increase in the number of small refineries, including simple, often illegal topping facilities.
These refineries exploit Kurdish crude, which is sold at a discount to international prices due to its landlocked location. Kurdish crude oil production has rebounded to 300,000 barrels per day after a virtual halt due to the closure of the pipeline.
Local trade in crude oil and refined products also increases truck traffic carrying oil, provoking local protests over safety and pollution.
The topping plants produce low-quality fuel oil and diesel, which is sold locally and delivered by truck to traders in Iran and Turkey.
Measures and reactions from the authorities
In June, a major fire broke out at a refinery on the Erbil-Gwer road, underlining the seriousness of the problem.
Refineries licensed in Erbil have ten days to comply with environmental requirements and rectify any violations or face legal action, according to Erbil governor Omed Khoshnaw.
Associated industries, such as tar manufacturers and electricity generators, must also clean up their operations or face arrest if they use poor-quality diesel.
The governor is threatening to arrest the owners of the facilities after increasing complaints about smoke and fog choking the region.
A commission, chaired by the vice-governor, is set up to protect Erbil’s environment and monitor the implementation of these directives and decisions.
Economic and environmental implications
The Kurdistan Regional Government (KRG) would not comment on the possibility of searching for other illegal refineries or cracking down on the illicit fuel trade.
However, these actions mark a turning point in the management of the region’s environmental and economic problems.
The measures are designed to improve air quality and address local concerns, while regulating a sector that has long been out of control.
By imposing strict standards and closing down non-compliant facilities, Kurdistan seeks to create a healthier environment and stabilize its oil economy.
