QatarEnergy buys 50% stake in TotalEnergies solar project in Iraq

QatarEnergy said on Monday that it had agreed to acquire a 50 per cent stake in TotalEnergies’ solar power project in Iraq, part of the $27bn Gas Growth Integrated Project (GGIP).

The deal, which is subject to regulatory approvals, will see QatarEnergy take a 50 per cent interest in the solar project while TotalEnergies will retain the remaining 50 per cent.

The energy project, which will be one of the largest in the world upon its completion, will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and can supply up to 1.25 gigawatts (peak) of solar-generated power to the electricity grid in the Basra region of Iraq.

The project will be developed in phases that will come online between 2025 and 2027 and will have the capacity to provide electricity to about 350,000 homes in the Basra region.

“I am pleased to have concluded our entry into this very important project for Iraq’s energy sector, and I look forward to working with our strategic partner, TotalEnergies, to progress it to fruition. We thank the Iraqi government for their trust and TotalEnergies for this opportunity to support Iraq’s solar power development,” said QatarEnergy CEO Saad al-Kaabi, who is also Qatar’s state minister for energy.

Last year, QatarEnergy joined a consortium to implement the GGIP project with a 25 per cent stake, while TotalEnergies and Iraq’s Basra Oil Company (BOC) held the remaining 45 per cent and 30 per cent stakes, respectively.

The GGIP initiative is a strategic project that is aimed at improving Iraq’s electricity supply, including recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce Iraq’s import bill. It also includes renewable energy projects.

TotalEnergies agreed with the Iraqi Government to proceed with the long-delayed $27bn energy project in April 2023, a deal that is expected to boost the country’s oil and gas production and enhance solar energy generation.

The company will initially invest $10bn in southern Iraq over 25 years together with its partners – QatarEnergy and BOC.

The first phase will include a $3bn investment by TotalEnergies in a project to inject seawater into oilfields to enhance crude recovery. The company will also invest in the Artawi oil field to increase its production capacity to as much as 210,000 barrels per day (bpd) from the current 85,000 bpd.

The French energy giant will also provide $2bn to build a processing plant for gas produced at the southern fields of West Qurna 2, Majnoon, Artawi, Tuba and Luhais.

TotalEnergies will invest in installations to help Iraq capture natural gas associated with several oil fields in the region and build a one-gigawatt solar plant to supply to the Basra regional grid.

Read: Iraq, TotalEnergies to proceed with $27bn energy project