Shafaq News/ On Tuesday, the Iraqi Ministry of Oil declared the initiation of a new licensing round for gas extraction, focusing on the western regions.
Iraqi Deputy Prime Minister and Minister of Oil, Hayan Abdul Ghani, said in a press statement that currently, Iraq utilizes only 60% of the produced gas. In comparison, approximately 40% of this gas is being incinerated.
Furthermore, he disclosed that all the burned gas had been contracted for investment with companies, including TotalEnergies, which produces 600 million cubic feet of gas, equivalent to three-quarters of the gas presently being burned.
According to Abdul Ghani, Basra Gas Company has pledged to invest in gas across three major oil fields: Rumaila, Zubair, and West Qurna.
He elucidated that Iraq, "through exceptional efforts," has contracted for the burned gas.
"Within 3 to 5 years, it will be capitalized on for electricity generation and other projects."
Contracts are slated to be referred in April, facilitating the extraction, processing, domestic utilization, and significant gas export overseas.
The "Oil and Gas" magazine reported that in 2023, Iraq ranked fifth among Arab countries possessing the largest natural gas reserves, with Qatar leading the list. However, despite boasting vast oil and gas reserves, Iraq's journey to becoming a major energy player is riddled with obstacles. Security threats and political instability create an unpredictable environment for investors while aging infrastructure struggles to handle production and processing.