TotalEnergies begins construction on 50-MMft3d Iraq gas plant
French oil major TotalEnergies has begun building a gas processing facility in Iraq, the first portion of a massive multi-energy project aimed at reducing the country's import bill and attracting foreign investment.
ArtawiGas25 will process 50 million cubic feet of gas per day from the Ratawi field, which is currently flared, or burned off. The gas will then supply local plants to power 200,000 households in the Basra region, the company said.
The facility represents a $250 million investment on top of an initial $10 billion slated to be spent by Total over four years. It will create up to 160 direct and indirect jobs during the construction phase and 30 permanent positions once operational.
In 2023, TotalEnergies announced a deal with Iraq on a $27 billion project to collect gas for electricity, increase oil production, treat seawater to use in the water-intensive oil production processes, and build a 1 Gigawatt solar park.
Iraq's government has said the solar park and first gas processing plant would be completed in 2025.
Construction on the solar project is due to begin in several weeks.
Iraq hopes the projects will attract fresh foreign investment into its energy sector that has not been forthcoming since a flurry of post U.S.-invasion deals over a decade ago.
Exxon Mobil, Shell and BP have all scaled back their operations in Iraq in recent years, contributing to a stagnation in oil production.
TotalEnergies is project operator with a 45% ownership share, alongside the national Basra Oil Company (30%) and QatarEnergy (25%).
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