TotalEnergies to boost Iraq’s power supply with $10bn investment in Basra
TotalEnergies has agreed to invest around $10 billion in several projects in the Basra region of Iraq, aimed at boosting the Gulf country’s electricity supply.
In this connection, the French energy giant has signed agreements with the Iraqi Ministries for oil and electricity and the National Investment Commission.
The projects are designed to boost the development of natural resources in Iraq, thereby improving the supply of electricity and address its power outage issues.
Backed by the Iraqi authorities, TotalEnergies will invest in installations for recovering gas that is flared on three oil fields. The recovered gas will be supplied to help in 1.5GW of power generation capacity in the first phase, which will be expanded to 3GW in the second phase.
The French energy giant has also committed to developing 1GWac of solar electricity generation capacity for supplying to the Basra regional grid.
The agreements signed by TotalEnergies include the construction of a new gas gathering network and treatment units. These will supply the local power stations, said TotalEnergies, which will also use its expertise to streamline the production of oil and gas from the Ratawi field by constructing and operating new capacities.
TotalEnergies will also construct a large-scale seawater treatment unit for boosting water injection capacities in southern Iraq fields without increasing water withdrawals as presently, Iraq is going through a water-stress situation.
The water injection is needed for sustaining pressure in various fields and will also help to streamline the production of the natural resources in Basra, said TotalEnergies.
Patrick Pouyanné — TotalEnergies Chairman and CEO said: “These agreements signal our return through the front door to Iraq, the country where our Company was born in 1924. Our ambition is to assist Iraq in building a more sustainable future by developing access to electricity for its people through a more sustainable use of the country’s natural resources such as: reduction of gas flaring that generates air pollution and greenhouse gas emissions, water resource management and development of solar energy.
“This project perfectly illustrates the new sustainable development model of TotalEnergies, a multi-energy Company which supports producing countries in their energy transition by combining the production of natural gas and solar energy to meet the growing demand for electricity.
“It also demonstrates how TotalEnergies can leverage its unique position in the Middle East, a region where the lowest-cost hydrocarbons are produced, to gain access to large-scale renewable projects.”