Associated gas: a qualitative leap in Iraq’s economic capabilities

Associated gas: a qualitative leap in Iraq’s economic capabilities

09/18/2025

The Ministry of Oil’s announcement of the production of 220 million standard cubic feet per day of associated gas from the West Qurna field is of great importance as it is part of the government’s efforts to reduce waste from this important resource and provide clean energy for power plants and factories. The expansion of the West Qurna field will provide electricity production with 250 megawatts by 2027. Furthermore, reducing and eventually halting flaring will support self-sufficiency, contribute to increasing job opportunities, developing infrastructure, and reducing the negative environmental impacts of flaring.

In a picture confirming the government’s insistence on fully exploiting energy resources, Prime Minister Mohammed Shia al-Sudani sponsored, last Sunday, the signing ceremony of contracts for the implementation of several major projects within the “Integrated Gas Development Project” (GGIP) in the Artawi field in Basra Governorate, which includes the production of oil, gas and clean energy. The Joint Operating Agreement (JOA) was signed between the Ministry of Oil, the French company Total, the Basra Oil Company and Qatar Gas Company, in the presence of the Qatari Minister of Energy Saad bin Sherida al-Kaabi, the CEO of the French company TotalEnergies Patrick Pouyanné, the Chairman of the Board of the Turkish company Enka Mehmet Tara, the Vice President of the Chinese company (CPECC) Liu Kai, and the Chief Operating Officer of the Korean company Hyundai Ryu Sunga, in the presence of the Deputy Prime Minister for Energy Affairs and the Minister of Oil.

Meanwhile, Hatem Abdul Imam, Director of the West Qurna 2 Development Authority at the Basra Oil Company, affiliated with the Ministry of Oil, said in a statement carried by the Iraqi News Agency (INA): “The current production of associated gas from the Mushrif reservoir is approximately 220 million standard cubic feet per day, of which 180 million cubic feet are supplied to Total as part of its contractual obligations, while the remainder is used to operate the field’s internal facilities.”

This achievement is a significant economic factor, according to several experts, who commended the government’s efforts to exploit natural resources. Industrial development expert Amer Al-Jawahiri emphasized this, explaining that “investment in gas has clear positive effects on the economic and investment sectors in particular, especially since the business environment in Iraq has become attractive to global investment companies.”

Al-Jawahiri added, in an interview with Al-Sabah, that “reaching actual implementation of gas investment, after years of delay, is extremely important, and we will actually achieve full gas investment in Iraq within a few years. He indicated that this would have major financial benefits for the country, in addition to its positive environmental impact.”

System stability

Al-Jawahiri pointed out that this approach will achieve stability in the electricity system by providing the necessary quantities of gas to operate the stations. It will also support the country’s treasury by reducing expenditures on importing gas from outside Iraq. He noted that gas investment enhances Iraq’s financial revenues, especially given the political will to maximize the benefits of all resources.

Integrated development project

For his part, economic expert Asaad Al-Rubaie considered investment in associated gas a project of paramount importance to the economy, given that it is a rentier economy that relies primarily on oil as a source of support for the federal budget. He explained that it is an integrated development project that links gas investment, reducing its imports, providing electricity, supporting the industrial sector, and providing huge sums to the state’s public treasury.

Associated gas investment

Al-Rubaie told Al-Sabah: “Investing in associated gas is almost the only project that has multiple benefits associated with it. From a financial perspective, it will save us billions of dollars that were spent on importing gas from abroad, and it will also enable us to manufacture, sell and export it abroad. He pointed out that this process will support revenues and provide hard currency, and this money will be directed towards development plans to support other sectors. In addition, it will increase Iraq’s capacity to produce electricity and dispense with importing it to feed gas stations.

Providing job opportunities

The spokesman explained that the stability of the electrical power supply is the cornerstone of any industrial project that relies on modern mechanization, which will increase the chances of establishing various projects that will support the general budget, diversify sources of income and provide many job opportunities for young people. He pointed out that Iraq is one of the countries that signed the Paris Climate Agreement in 2015, and this investment will reduce the quantities of gas flaring that have greatly harmed the environment. This is in compliance with this agreement and an improvement of Iraq’s image in international forums in the environmental field, and opens the doors to investment in energy.

Stop gas flaring

Al-Rubaie continued, saying that stopping the flaring of gas will pave the way for the launch of transformational and strategic industries in the future, such as petrochemical plants, fertilizers, plastics and synthetic rubber industries, adding that investing in associated gas has many other economic benefits and impacts that are attributed to the direction of the current government headed by Prime Minister Mohammed Shia Al-Sudani, which has begun investment operations for associated gas and signed a number of agreements with various international companies to stop the waste of wealth.

alsabaah.iq