TotalEnergies will maintain the other 50% share in this project, which is part of Iraq's $27 billion Gas Growth Integrated Project (GGIP). QatarEnergy did not disclose the financial details of the agreement.
The GGIP aims to enhance Iraq's electricity supply by capturing flared gas from three oilfields and utilizing it to power plants, thereby reducing the country's reliance on imports. The initiative also encompasses various renewable energy projects.
Currently, Iraq imports between one-third and 40% of its electricity and gas from Iran, yet it continues to experience significant power outages, particularly during the hot summer months when demand for cooling escalates.
The solar project will be developed in phases, with operations expected to commence between 2025 and 2027, generating up to 1.25 GW at peak capacity through the use of 2 million bifacial solar panels, according to QatarEnergy.
This project is anticipated to supply electricity to approximately 350,000 households in the oil-rich Basra region of southern Iraq.
Last year, QatarEnergy became part of a consortium for the GGIP project, acquiring a 25% stake, while TotalEnergies and Iraq's Basra Oil Company hold the remaining 45% and 30% stakes, respectively.