GGSIPU tops anchored projects in the Middle East in 2023
Shafaq News/ Spending on energy production enhancement projects reached unprecedented records in 2023 in the Middle East region, Meed magazine reported.
The gas production development project in Iraq topped among these initiatives. Contracts worth approximately $25.3 billion were awarded for energy generation and transmission projects, and it's anticipated that this momentum will continue in the upcoming period.
The report highlighted that the gas production development project in Iraq, costing $10 billion, secured the top position and is currently under study. Following that is the development project of the Upper Zakum field in the UAE, estimated at $7 billion, now in the phase of assessing bids.
The magazine pointed out that the gas production development project from the Dorra field in the shared area between Kuwait and Saudi Arabia, costing around $5 billion, ranked third. It's currently in the stage of preparing initial designs and plans, scheduled to commence work in 2025 and be completed by 2027.
In July 2023, Iraq and the French giant company Total Energy signed a long-awaited $27 billion energy agreement aimed at increasing oil production and enhancing the country's electricity generation through four projects involving oil, gas, and renewable energy sources.
The deal, initially signed in 2021 with an initial investment of $10 billion in southern Iraq over 25 years, faced delays due to disagreements among Iraqi politicians regarding the terms. However, the deal was finalized in April, with Iraq agreeing to a smaller share than initially demanded in the project, with Total Energies obtaining 45% and Qatar Energy with the remaining 25%.
The Integrated Gas Growth Project (GGSIPU) aims to improve electricity supplies in the country, including by reclaiming gas flared in three oil fields to supply power stations. Total Energies also stated plans to develop a 1-gigawatt solar power station to supply electricity to the Basra regional grid and invited Saudi Arabia's Acwa Power company to join the project.
