“The fifth round of licensing gas projects, as well as the Total project and sixth round projects, will make Iraq self-sufficient and an exporter of gas within 3-5 years,” Sudani said in an interview with Alawla TV.
A deal signed between the Iraqi government and French TotalEnergies will see the energy giant build four projects for oil, gas, and renewables in southern Iraq in the span of 25 years. The contract was initially signed in 2021 but faced a delay due to disagreements over Iraq’s stake in the deal as Baghdad demanded a 40 percent share.
The deal, however, was agreed upon early April and TotalEnergies will have the lion’s share with a 40 percent stake of the so-called Gas Growth Integrated Project (GGIP), followed by Iraqi state-owned Basra Oil Company with 30 percent, and QatarEnergy with 25 percent.
Iraq is still one of the world’s largest gas flaring countries. The flaring process is when oil wells burn the excess gas they can't store or use, and is a convenient way to deal with the waste product known as associated petroleum gas, however the process is among the main reasons for global climate change.
Iraq’s energy sector is closely tied to Iran. Baghdad depends on electricity and natural gas imports from its neighbor to power its national grid. Iraqi officials have said it will be impossible to sever ties with Iran in order to comply with US sanctions. Iraq was granted a waiver by the US to continue its Iranian imports.
The country also suffers from chronic electricity shortages, especially felt when summer temperatures reach over 50 degrees Celsius. The high temperatures also lead to a very high consumption of power.
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