TotalEnergies and the Iraqi government have reached an agreement on the $10bn Gas Growth Integrated Project (GGIP) in Iraq with an aim to monetise and develop the country’s natural gas resources to boost the electricity supply.

The two parties have been in discussions about the project for a few years now and had even signed a development and production contract in 2021.

QatarEnergy will be joining the Gas Growth Integrated Project by acquiring a stake of 25%.

Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “We thank TotalEnergies for inviting us to partner with them and we thank the esteemed Iraqi Government for welcoming us to be part of this partnership.

“We are pleased to be part of this significant development, which is important for Iraq’s energy sector, and we look forward to working with TotalEnergies and Basra Oil Company to progress it to fruition.”

TotalEnergies and Iraqi government have agreed to allot a stake of 30% to the state-owned Basra Oil Company (BOC) in the project. The French energy company with the remaining stake of 45% will be the project’s operator.

The company stated: “TotalEnergies welcomes the continuity of the voice of the State of Iraq on this Development & Production Contract, which is a strong and positive signal for foreign investment in the country.”

According to TotalEnergies, the Gas Growth Integrated Project involves designing and constructing facilities to enable the recovery of flared gas on three oil fields for feeding gas to power generation plants.

The project also calls for the construction of a seawater treatment facility for providing water injection to maintain pressure for increasing regional oil production. This will serve as an alternative to the use of fresh water drawn from aquifers and rivers.

Additionally, TotalEnergies will build a 1GW solar power plant for delivering electricity to the Basrah regional grid. The French company, in agreement with Iraqi authorities, will invite Saudi Arabia-based ACWA Power to participate in the solar power project.