Iraq is moving forward with plans to establish an offshore liquefied natural gas (LNG) import terminal to address the shortfall in gas supplies following a significant reduction in imports from Iran.
According to Hamza Abdel Baqi, Director of the South Gas Company, the country is preparing to award a contract for the construction of the terminal and associated pipelines. These pipelines will connect the facility to onshore infrastructure, ensuring a steady gas supply to power stations in southern Iraq.
“Iraq is actively working on building an LNG import terminal along with a network of pipelines to integrate it with onshore power facilities,” Baqi stated in an interview with the Iraqi News Agency.
While he did not specify the potential sources for LNG imports, Iraq had previously explored the possibility of securing Qatari LNG in 2022 to meet its growing energy needs. Additionally, in 2024, the country signed a memorandum of understanding with Turkmenistan for a potential supply of 20 million cubic meters of gas per day. However, analysts remain skeptical about the feasibility of this agreement, as the gas would need to be transported through Iran’s pipeline network, which faces strict Western sanctions.
Despite possessing an estimated 3.5 trillion cubic meters of natural gas reserves, Iraq has struggled to develop its gas sector due to prolonged conflicts and underinvestment. The new LNG terminal is seen as a crucial step toward stabilizing the country’s power supply and reducing reliance on external energy sources.