Iraq Advances in Negotiations for Liquefied Gas Deal with Algeria
Iraq is currently engaged in advanced negotiations to finalize a liquefied natural gas (LNG) deal with Algeria, with the intention of reaching completion before the onset of summer next year.
Sources indicate that the formal announcement of the deal could occur within the next two months, contingent upon Iraq’s ability to finalize the necessary infrastructure for gas imports. The expected contract appears to be of medium-term duration, with projected annual quantities near one million tons. However, specific figures regarding the actual amount of gas to be contracted are still under discussion.
This Algerian LNG agreement is anticipated to bolster Baghdad’s electricity sector, potentially providing support as early as the summer of 2025 or at the beginning of the winter season.
To facilitate this development, Iraq is focusing on enhancing the infrastructure at the Khor Al-Zubair port in Basra Governorate to accommodate liquefied gas imports. Completion of these preparations is expected to take between three to five months. Plans include contracting a floating platform for the discharge and storage of gas, which will be connected via a 40-kilometer pipeline to the national distribution network near Shatt al-Basra.
In a related context, Ezzat Saber, the Undersecretary of the Iraqi Oil Ministry for Gas Affairs, noted that the federal government is exploring the possibility of importing gas from Qatar and Algeria. This consideration arose following the cancellation of a waiver previously granted by the U.S. President, which allowed Iraq to import natural gas from Iran. Saber emphasized the ministry’s commitment to achieving a cessation of flaring associated gas by the year 2030.