Iraq Seeks Floating Gasoline Terminals to Bridge Energy Hole

Last updated: 2025/03/24 at 7:44 AM

Editorial Team 1 month ago

Iraq is in talks with a number of firms to safe two floating storage regasification models by early June, as OPEC’s second-biggest producer tries to deal with energy shortages attributable to a US transfer towards Iran.

The US determined earlier in March to not renew a waiver that allowed Iraq to purchase electrical energy from Iran, with Donald Trump’s administration pressuring Tehran into negotiating a brand new nuclear deal. The choice has left the Iraqi authorities in want of extra gasoline to fulfill its rising demand for electrical energy.

The FSRUs, which can maintain liquefied pure gasoline to transform to gasoline, shall be put in close to Khor al-Zubair Gulf port in Basra, Iraqi Oil Minister Hayyan Abdul Ghani mentioned in an interview with the Iraqi state-run TV on Sunday.

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Iraq depends on its home gasoline manufacturing for round 60 % of its wants. Imports cowl the remaining 40 % “however throughout peak time this proportion will increase to succeed in 50 %,” the minister mentioned.

The Iraqi authorities has additionally launched a young for a hard and fast regasification platform within the Grand Faw port within the south.

Iraq has been in search of to chop the quantity of gasoline it burns off unproductively to be able to scale back imports amid rising demand, aiming to fully cease gasoline flaring by the top of 2028.

In the meantime, talks between Iraq and oil firms working within the nation’s semi-autonomous Kurdistan have reached “superior levels,” in keeping with Abdul Ghani. The minister mentioned he hopes exports from the northern area will resume in per week.

Whereas Iraq has repeatedly introduced progress for the restart of the northern export pipeline, the group representing oil producers within the nation’s north have mentioned they wanted extra readability on compensation and that the contracts to renew exports aren’t but in place.

Iraq has pledged the nation will stay inside its general OPE+ quota after the restart of the crude export pipeline however hasn’t clarified the way it will obtain that.

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