Bloomberg: Iraq to slash gas flaring by 20% in 2025 with major new projects

Iraq, the second-largest oil producer in OPEC, has set an ambitious goal to reduce gas flaring to just 20% of its total gas output by next year.

The country is taking significant steps to meet rising domestic energy demand and reduce its reliance on fuel imports. As of the end of 2024, Iraq successfully captures around 67% of the gas produced from its oil fields, with ongoing projects in the southern region — such as one by TotalEnergies SE — set to increase this rate even further.

Speaking to Bloomberg, Ezzet Saber Ismael, Iraq’s Deputy Minister for Gas Affairs, confirmed that the government is determined to eliminate the wasteful practice of gas flaring by the end of 2029 or early 2030, Caliber.Az reports.

Flaring has been a persistent issue globally, especially in oil-producing nations like Iraq, Russia, Iran, and the US, which have some of the highest rates of gas flaring. The process, which involves burning off excess gas instead of capturing it for use in industries like power generation, has long been a source of environmental concern.

The country’s need to reduce gas flaring is compounded by its reliance on fuel imports, notably from neighbouring Iran. Iraq has required regular sanctions waivers from Washington to continue importing Iranian gas. Ismael confirmed that Iraq's current waiver is valid until June 2025. In response to these challenges, Iraq aims to expand its domestic gas capture capacity, ensuring that more of its own resources are utilized for power generation and industrial use.

While flaring remains a major issue, Ismael pointed out that Iraq has already made notable progress. The country reduced its gas flaring from 47% in 2021 to about 33% in 2024. However, gas flaring volumes have remained relatively stable worldwide in recent years, according to the World Bank's Global Gas Flaring Tracker. Despite previous delays in meeting flaring reduction goals, Iraq remains focused on reducing this figure even further.

To achieve this target, Iraq is set to roll out new projects in 2025, which will capture a total of 290 million cubic feet of gas per day. Notably, one of these projects will be developed at the Artawi field by TotalEnergies SE, with an initial target of capturing 50 million cubic feet of gas per day. By 2027, this project is expected to increase its capacity to 300 million cubic feet per day, significantly contributing to Iraq’s overall gas capture efforts.

The Artawi project is part of a broader plan for gas development in the region, with investments of around $2 billion expected for the creation of a complete gas complex. The "accelerated investment" initiative is slated for completion by the end of next year, ensuring that Iraq can better utilize its gas resources domestically.

In addition to efforts to capture more gas, Iraq is planning to build a liquefied natural gas (LNG) import terminal at the Grand Faw port in the south. This terminal will allow Iraq to meet its growing energy demand by importing LNG from international markets. Starting in January 2025, Iraq will send out invitations to US companies to compete for the construction of the terminal. The facility will have a storage capacity of 300,000 cubic meters of LNG.

Currently, Iraq produces approximately 3.122 billion cubic feet of gas per day, with about 1.048 billion cubic feet being flared as of December 22, 2024.

By Tamilla Hasanova