The Iraqi Cabinet announced that it has approved a $619 million contract with the Italian company SICIM for the construction of gas facilities at the West Qurna 2 oil field in the south of the country.
According to the statement, the 33-month agreement entails the rehabilitation of a gas treatment station and the construction of new gas facilities at the giant field operated by Russia’s Lukoil.
This deal is part of a series of contracts aimed at developing gas facilities, which energy officials say will help Iraq reduce the flaring of associated gas from oil extraction and utilize the processed gas for electricity generation.
Iraq, a member of OPEC, heavily relies on Iranian gas imports to power its electric grid. However, the United States has been pressing Iraq to reduce its dependence on Iranian gas.
Iraq continues to burn a portion of the gas extracted alongside crude oil due to the lack of necessary facilities to process and convert it into fuel for domestic use or export.
This initiative marks a significant step in Iraq’s efforts to enhance its energy infrastructure and reduce reliance on external sources.
Earlier this month, the Iraqi Cabinet approved a significant donation of fuel to the embattled hospitals of Gaza.
The meeting culminated in several decisions, notably the contribution of 10 million liters of gas oil fuel to support the healthcare facilities in the Gaza Strip, expressing solidarity with the residents suffering from the aggression and blockade by Zionist forces.
This humanitarian move aims to alleviate the hardships faced by the Palestinian people in Gaza, who are enduring the consequences of ongoing hostilities and restrictions.
The Iraqi government’s donation underscores a strong bond of brotherhood with the Palestinian cause, providing much-needed relief to Gaza’s essential services, which are struggling amidst the energy crisis.
By ensuring that Gaza’s hospitals can keep their doors open, Iraq is contributing to the preservation of human life and dignity against the backdrop of conflict and siege.
