TotalEnergies has started building a gas processing facility in Iraq’s Ratawi field as part of a $27 billion energy project.
The facility will power 200,000 homes in Basra and aims to attract foreign investment, revitalising Iraq’s energy sector after years of instability.
TotalEnergies is taking a significant step in reshaping Iraq’s energy future with the construction of a new gas processing facility in the south.
The ArtawiGas25 plant will process 50 million cubic feet of gas daily, enough to power 200,000 households in the Basra region.
This move follows a breakthrough in May when TotalEnergies and the Iraqi government revived a stalled $27 billion energy project.
Initially agreed in 2021, the deal promised to bring $10 billion in investments over 25 years, focusing on oil, gas, and renewable energy projects.
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However, disputes over terms had delayed progress until Iraq finally agreed to a 30% stake in the venture, paving the way for its revival.
The energy giant’s return to Iraq comes at a time of improving political stability, which is attracting foreign investment back into the country.
This marks a notable shift from recent years, during which oil majors like Exxon Mobil and Shell reduced their operations in Iraq due to instability.
TotalEnergies’ CEO, Patrick Pouyanne, expressed optimism, highlighting that the Iraqi government had confirmed the contract without changes, bringing positive momentum for the project.
In addition to the gas plant, Iraq is working to restart oil exports through the Iraq-Turkey pipeline, which were suspended due to a legal dispute with Turkey.
The potential resumption of these exports, coupled with foreign investment, signals a promising future for Iraq’s energy sector.
