Sector News

TotalEnergies and Iraq sign agreements for US$27bn projects

September 19, 2021
Chemical Value Chain

TOTALENERGIES has signed an agreement with the Government of Iraq, and the country’s National Investment Commission (NIC), for oil, gas, and solar projects in the Basra region, worth US$27bn over 25 years.

According to TotalEnergies, Iraq, which is rich in natural resources, is experiencing electricity shortages amidst a sharp increase in demand. The Financial Times reports that the country has been courting foreign investors to boost oil output and natural gas capture to alleviate shortages.

Through the announced projects, TotalEnergies – supported by the Iraqi authorities – expects to enhance the development of the nation’s natural resources to improve electricity supply.

Under the agreements, TotalEnergies will invest in installations to recover gas being flared on three oil fields to supply gas to 1.5 GW power generation in a first phase, expanding to 3 GW in the second phase.

TotalEnergies highlights that it will construct a new gas gathering network, treatment units to supply local power stations, and work to optimise oil and gas production at the Ratawi field by building and operating new capacities. Reuters reports that the company will build a processing plant for gas produced at the southern fields of Artawi (Ratawi), Luhais, Majnoon, Tuba, and West Qurna 2. It adds that TotalEnergies will help boost output at Ratawi from 85,000 bbl/d to 210,000 bbl/d.

The agreements also include construction of a large-scale sea-water treatment unit to increase water injection capacities in southern Iraq fields without increasing water withdrawals as the nation faces a water stress situation. Water injection is needed to maintain pressure in several fields and so will help optimise production of natural resources in the Basra region.

Another agreement will see TotalEnergies construct and operate a photovoltaic power plant with peak production of 1 GW to supply electricity to the Basra region electricity grid.

TotalEnergies CEO Patrick Pouyanné said that the company supports producing countries in their energy transition by combining natural gas production with solar energy to meet growing electricity demand.

The agreed projects will cost US$10bn in capital expenditure, and over the following 25 years the investment will grow to US$27bn including operational expenditure.

According to Reuters, Pouyanné said the plan is to mobilise teams in Iraq by the end of 2021.

Pouyanné commented: “Our ambition is to assist Iraq in building a more sustainable future by developing access to electricity for its people through more sustainable use of the country’s natural resources such as: reduction of gas flaring that generates air pollution and greenhouse gas emissions, water resource management and development of solar energy.”

by Amanda Jasi

Source: thechemicalengineer.com

comments closed

Related News

June 24, 2022

BASF to build commercial scale battery recycling black mass plant in Schwarzheide, Germany

Chemical Value Chain

BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.

June 24, 2022

Clariant restructures business units, reorganizes leadership

Chemical Value Chain

Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.

June 24, 2022

Chemicals & Plastics Procurement: what to expect in the second half of 2022

Chemical Value Chain

Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.