Iraq’s Ministry of Electricity announced the signing of a contract to implement the Al-Faw Gas Power Plant in Basra. This facility will become the largest investment-based gas-fired station in southern Iraq. The project highlights Iraq’s ongoing efforts to modernize its energy sector and attract international investment.
Additionally, GE will construct the 3,000-megawatt combined-cycle plant. It will feature four gas turbines and two steam units. In addition, advanced seawater desalination technology will support the plant’s operational needs, ensuring reliable water supply for cooling and other processes.
Therefore, General Company for Electricity Production (Southern Region) signed the contract with investor Advanced Technology Systems Company under a “Take and Pay” model. This system requires payment only after the company delivers the generated electricity. Unlike previous agreements, the investor will also provide the gas needed for the plant’s operation.
Minister of Electricity Ziyad Ali Fadel attended the signing ceremony. He praised Prime Minister Mohammed Shiaa Al-Sudani for supporting the energy sector and removing obstacles to new projects. Fadel explained that Al-Faw’s strategic location near the Grand Faw Port and its connection to Kuwait via the Wafra-Faw electrical line make it ideal.
Currently, Basra operates 15 power plants producing about 7,000 MW, exceeding the province’s demand of 5,000 MW. Consequently, the surplus flows to neighboring governorates through newly inaugurated 400 kV transmission lines.
Furthermore, Fadel highlighted other ongoing initiatives, including the 1,000 MW Shams Al-Basra solar project, rehabilitation works at the Hartha Power Plant, and new investment opportunities to strengthen Iraq’s national grid. He emphasized that these projects aim to boost energy reliability, improve efficiency, and support sustainable growth across the country.
The Al-Faw Gas Power Plant is expected to create jobs, stimulate the local economy, and enhance electricity exports. Moreover, it demonstrates Iraq’s commitment to modernizing its energy infrastructure while meeting growing domestic and regional demand.