Oil Minister Hussain al-Shahristani held a news conference at the Najaf governorate building Saturday.

"The refinery will cover Najaf's demands for kerosene, gasoil, and fuel oil," he said, the Voices of Iraq news agency reports.

The second refinery unit at the Najaf plant brings the capacity to 20,000 barrels per day. Shahristani said a planned third unit will serve Najaf and neighboring provinces, boosting capacity to 30,000 and making it Iraq's fourth-largest refinery.

The three largest are much larger -- the 110,000 bpd Doura refinery; the 150,000 bpd Basra refinery; and the 310,000 bpd Baiji refinery. Baiji is back online after a March 13 power trip, VOI reports.

All three are operating at below capacity as recent accidents, attacks and a short supply of electricity takes its toll.

Najaf, a southwest province in Iraq and one of Shiite Islam's holiest areas, has expressed disdain in the past for a lack of electricity and fuels. The entire country is underserved currently.

Dathar al-Khashab, director-general of the state-run Midland Refineries Co., said "the company signed a contract with the U.S.-based company Cisco to construct Najaf refinery's gasoline unit."