Iraq is moving ahead with plans to construct a floating terminal to handle liquefied natural gas (LNG) imports after losing a significant portion of its gas supply from Iran.
Hamza Abdel-Baqi, Director of the South Gas Company, confirmed on Wednesday that Iraq will soon award a contract for the construction of a gas platform and the necessary pipelines to link the facility with onshore pipelines. This project aims to help deliver gas to power plants in southern Iraq.
For years, Iraq has relied on gas imports from Iran to meet the needs of its power plants. However, these supplies have stopped, forcing the Iraqi government to seek alternative sources of gas. In addition to efforts to become self-sufficient in gas production, the government is working to secure gas supplies from other countries.
Earlier this year, the Iraqi Ministry of Electricity announced that gas from Turkmenistan would cover half of the country’s power plant requirements.
Ahmed Musa, spokesperson for the Ministry of Electricity, said that the government is working with the Trade Bank of Iraq (TBI) to finalize financial procedures for the gas deal with Turkmenistan.
This development comes amid an escalating electricity crisis in Iraq, with widespread blackouts impacting commercial, industrial, residential, and governmental sectors.
Last October, the Iraqi Ministry of Electricity signed a deal with Turkmenistan to purchase up to 20 million cubic meters of gas per day. This agreement aims to ensure a steady supply of fuel for Iraq’s gas-fired power plants.
Electricity Minister Ziyad Ali Fadel previously stated that about 60% of Iraq’s electricity is generated from gas-fired plants. To reduce dependence on foreign suppliers, the Iraqi government is investing in domestic gas production, boosting gas imports, and diversifying its energy sources.
Related Topics: