Iraq Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market: By Segment: Kerosene, Vacuum Gas Oil, Bitumen; Market Dynamics: SWOT Analysis, Key Indicators for Demand, Key Indicators for Price; Trade Data Analysis; Price Analysis; Competitive Landscape; Key Trends and Developments in the Market; 2024-2032

Iraq Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market Outlook

The Iraq vacuum bottom residue (kerosene, VGO and bitumen) market reached a value of about USD 2866.50 million in 2023. The market size is further expected to grow at a CAGR of 8.6% during the forecast period of 2024-2032.

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Key Trends in the Market

In the vacuum distillation process, the bottoms removed from the vacuum distillation tower are known as vacuum residue or vac resid which are the heaviest of the distillation cuts and often mixed with other materials. Vacuum resid's high viscosity works to its benefit when incorporated into asphalt, making this a highly valuable use.

Vacuum distillation is used to produce kerosene, which is used as a cutter stock. VGO is made utilising a vacuum distillation column and a variety of techniques, including hydrogenation and cracking, and is used as a feedstock to produce gasoil, gasoline, and other by products. The waste product of a vacuum distillation tower can also be converted into bitumen.

• Made from petroleum, kerosene serves as an insecticide, a grease-solvent, a fuel, and a component for jet engines. Additionally, it can be used in kerosene lamps, furnaces, and home heaters. It is still commonly used in many locations for lighting, cooking, and heating. Many of the kerosene-based blends used in military jet fuels are also used in ordinary commercial jet fuel, which is effectively high-quality plain kerosene. This is driving the Iraq vacuum bottom residue (kerosene, VGO and bitumen) market growth.

• The need for bitumen in a variety of applications, including roads, waterproofing, adhesives, and insulation, is projected to increase in Iraq as the country experiences rapid industrialisation. Due to its high viscosity, stickiness, and water-resistance qualities, bitumen is a crucial raw material in the construction and industrial sectors for making water tanks, dams, and bridges.

• The demand for bunker fuel in the marine industry is growing, which is driving up demand for vacuum gas oil. The Iraq vacuum bottom residue (kerosene, VGO and bitumen) market is expected to benefit from growth in the sea trade and marine exploration in the upcoming years. An increase in research and development spending on fluid catalytic cracking and hydrocracking is enabling this method to produce high-quality results. Vacuum gas oil can therefore aid in increasing market demand for diesel.

Iraq Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market Analysis

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The market is categorised on the basis of segments into kerosene, vacuum gas oil, and bitumen. Kerosene is further divided on the basis of type into naphthenic and paraffinic, while on the basis of application it is divided into transport and fuel, among others. Vacuum gas oil is sub-divided based on type into LVGO, MVGO, and HVGO. On the basis of application, vacuum gas oil is divided into gasoline production and diesel production, among others.

Bitumen is sub-divided on the basis of grade into 20/30, 40/50, 50/70, 60/70, and 80/100. Bitumen is further segmented based on type into high sulphur and low sulphur. Based on application, bitumen is categorised into road building and roofing, among others. 

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Iraq vacuum bottom residue (kerosene, VGO and bitumen) market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.  

• Wataniya Group

• Majd al-Iraq

• Al Salam Al Massi Co (ASAMCO)

• Phoenix Refinery

• Aran Asphalt Factory

• Others

Market Share by Segment

Kerosene is a flammable hydrocarbon liquid widely used as fuel and is also known as paraffin or paraffin oil. Kerosene lamps are frequently used as a more environmentally friendly substitute for solid fuels like biomass and coal for cooking when electricity is not available. Kerosene is widely used as jet fuel for aircraft jet engines and as a fuel for lighting, cooking, and fire toys like poi. The growing use of kerosene is propelling the Iraq vacuum bottom residue (kerosene, VGO and bitumen) market.

Bitumen is frequently employed as a waterproofing material on the roofs of residential and commercial structures because of its extremely sticky and viscous character. Bituminous waterproofing is applied to prevent water leaks and seepage through the roof. 

In addition, bitumen is frequently utilised as a chemical component in a variety of products, including solvents and black paints. Bitumen functions as a chemical additive that increases the effectiveness of paints and coatings and the viscosity of waterproofing substances. Chemically modified bitumen is used in road building and waterproofing as well as a candy-coated chemical component in emulsions.

Vacuum gas oil (VGO) is primarily employed as an intermediate feedstock to increase the production of gasoline and diesel at refineries. VGO is created utilising a vacuum distillation column and a variety of techniques, including hydrogenation and cracking. One of the major factors behind the growth of the vacuum gas oil industry in Iraq is the rapidly expanding petroleum sector as well as the automotive industry. The forecast for the Iraq vacuum bottom residue (kerosene, VGO and bitumen) market is anticipated to improve as a result of rising demand for fossil fuels across a variety of industries and increased efforts to produce a significant amount of oil and gas. 

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Competitive Landscape

Wataniya Group, founded in 2012 has offices in Iraq and the United Arab Emirates, and comprises of several businesses. It focuses on oil trading, distribution, and transportation and many areas of the cement and oil-gas industries. In the oil field sector, the company has agreements with significant worldwide firms, particularly in the areas of naphtha treating units, bitumen refining units, and other cutting-edge oil industries.

Majd al-Iraq, located in Iraq's Kurdistan Region is a bitumen and barrel production facility, with a strong presence in the Iraq vacuum bottom residue (kerosene, VGO and bitumen) market. On a daily basis, Majd Al Iraq manufactures 1000 metric tonnes of bitumen for the global market. Majd Al Iraq strives to reduce the demand gap in the current global bitumen market, by selling high-quality bitumen of various grades and specifications.

Phoenix Refinery was established in Denmark in 1907 and has more than a century of experience in bitumen and polymer-based products. The business provides a wide variety of products to the international market. Phoenix has actively participated in numerous international initiatives with partners from throughout the world.

Other market players include Al Salam Al Massi Co (ASAMCO) and Aran Asphalt Factory, among others.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.