Baghdad (IraqiNews.com) – Iraq is exploring new avenues to secure fuel for its power plants, with the Ministry of Electricity seeking to diversify its gas sources.
The endeavor includes a preliminary agreement with a French company to discuss the supply of liquefied natural gas (LNG) and its regasification within the country in the coming phase.
The Electricity Ministry said on Monday that Electricity Minister Ali Saadi Wahib signed a preliminary agreement in Paris with TotalEnergies to supply LNG to power plants in Iraq.
The step comes as Iraq seeks to reduce its reliance on limited gas sources and secure a more stable fuel supply for its power plants, thereby increasing electricity supply hours and providing the Ministry of Electricity with additional options during upcoming negotiations with suppliers.
The agreement establishes a framework for discussions and negotiations regarding the potential delivery of LNG via a floating platform that would dock at Iraqi ports in Basra. The LNG would then be regasified and injected into the Iraqi national grid.
The agreement includes exploring the deployment of a floating platform to receive LNG shipments in Iraq and conduct regasification operations before transporting the fuel via the national gas pipeline network to power plants, according to the operational needs of the Iraqi grid.
The proposed approach seeks to enhance the flexibility of the fuel system, as LNG can serve as an additional source when necessary. This strategy also enables Iraqi authorities to evaluate the quantities, timing, and both commercial and technical terms prior to finalizing a binding agreement.
Under the initial memorandum of understanding, Iraq is continuing negotiations with the French company to finalize details regarding supplies, infrastructure, and regasification mechanisms.
This new endeavor aligns with another initiative focused on supplying LNG to the Khor Al-Zubair port in Basra. Baghdad has entered into an agreement with US-based Excelerate Energy to establish a regasification terminal that will operate independently.
