TotalEnergies, the Iraqi Ministries for oil and electricity, and the country’s National Investment Commission have signed $10 billion in agreements to develop the country’s electricity supply.
TotalEnergies, with the support of the Iraqi authorities, will develop 1GW of solar electricity generation capacity to supply the Basra regional grid. Furthermore, the company will invest in installations to recover gas that is being flared on three oil fields to supply gas to 1,5GW of power generation capacity in the first phase, growing to 3GW in a second phase.
These agreements include:
- The construction of a new gas gathering network and treatment units to supply the local power stations, with TotalEnergies also bringing its expertise to optimize the oil and gas production of the Ratawi field, by building and operating new capacities.
- The construction of a large-scale seawater treatment unit to increase water injection capacities in southern Iraq fields without increasing water withdrawals as the country is currently facing a water-stress situation. This water injection is required to maintain pressure in several fields and as such will help optimizing the production of the natural resources in the Basra region.
- The construction and operation of a photovoltaic power plant with a capacity of 1 GW to supply electricity to the grid in the Basra region.
“Our ambition is to assist Iraq in building a more sustainable future by developing access to electricity for its people through a more sustainable use of the country’s natural resources such as reduction of gas flaring that generates air pollution and greenhouse gas emissions, water resource management and development of solar energy,” said Patrick Pouyanné, TotalEnergies’ Chairman and CEO.
“This project perfectly illustrates the new sustainable development model of TotalEnergies, a multi-energy company which supports producing countries in their energy transition by combining the production of natural gas and solar energy to meet the growing demand for electricity. It also demonstrates how TotalEnergies can leverage its unique position in the Middle East, a region where the lowest-cost hydrocarbons are produced, to gain access to large-scale renewable projects,” he added.
Iraq, although rich in natural resources, is experiencing electricity shortages while it faces a sharp increase in demand from the population, according to the TotalEnergies statement.
The $10 billion agreements form part of a larger $27 billion investment package aimed at boosting oil and gas output and reducing power outages.