Iraq is preparing to buy two floating gas processing facilities to replace its reliance on Iranian gas, as US sanctions on Tehran tighten.
The Iraqi government is working to boost its domestic gas production, aiming to meet 50% of the country’s gas needs during peak demand periods, according to Bloomberg.
The new gas terminals will be located at Khor Al-Zubair port in Basra, as confirmed by Iraqi Oil Minister Hayan Abdul-Ghani.
Iraq heavily imports gas and electricity from Iran, but the US recently denied Iraq a sanctions waiver, forcing the country to seek alternatives for Iranian power imports.
This initiative is part of a broader effort to diversify Iraq’s energy sources, develop local gas reserves, and reduce dependence on Iranian imports. The goal is to achieve self-sufficiency in the near future.
Liquefied gas is a key component of Iraq’s strategy to maintain a reliable electricity supply. Additionally, the Ministry of Oil is constructing a 40-kilometer pipeline to connect imported gas to Iraq’s national grid.
The project is expected to help alleviate power shortages and improve the efficiency of power plants.