Iraq seeking major US investment in natural gas

By THE MEDIA LINE STAFF

SEPTEMBER 2, 2024 12:00

Updated: SEPTEMBER 2, 2024 12:03

Engineers walk at the gas liquefaction plant of the Basra Gas Company (BGC) at its headquarters in Iraq's southern city of Basra on December 13, 2023. (photo credit: HUSSEIN FALEH/AFP via GETTY IMAGES) — Engineers walk at the gas liquefaction plant of the Basra Gas Company (BGC) at its headquarters in Iraq's southern city of Basra on December 13, 2023.

(photo credit: HUSSEIN FALEH/AFP via GETTY IMAGES)

This initiative is part of a larger effort within Iraq to attract greater US investment into Iraq’s energy sector, particularly after Chinese firms dominated the most recent licensing rounds.

Iraq is slated to offer 10 gas exploration blocks to US companies during Oil Minister Hayan Abdel-Ghani's upcoming visit to the United States, according to an announcement made on Saturday.

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This initiative is part of a larger effort within Iraq to attract greater US investment into Iraq’s energy sector, particularly after Chinese firms dominated the most recent licensing rounds.

The 10 available gas blocks, which were left unclaimed following six prior licensing rounds, will be on sale in a new bidding process, according to Iraqi state media.

This move aligns with Iraq’s goal of enhancing domestic gas production and achieving greater energy independence from nearby Iran, from which it relies heavily for electricity generation.

Developing 13 oil and gas blocks

Abdel-Ghani also revealed plans to launch a new gas investment project at the Al-Faihaa oil field in southern Iraq by the end of the year. This project, which is expected to have a capacity of 125 million standard cubic feet (mcf), is a crucial element of Iraq’s strategy to strengthen its energy infrastructure.

An Iraqi youth walks near a flare stack in the Rumaylah oil field near Iraq's southern port city of Basra on May 5, 2024. (credit: HUSSEIN FALEH/AFP via GETTY IMAGES)

This latest effort follows recent agreements to develop 13 oil and gas blocks, which aim to increase Iraq’s crude and gas output.

In April of this year, the United States State Department announced a new deal that would help Iraq capitalize on its natural gas reserves. Reportedly, Iraq flares, or wastes, upwards of 18 million cubic meters of gas a year, the second most annually after Russia.