TotalEnergies’ landmark US$27 billion integrated energy project in Iraq has formally shifted into full execution, marking a significant step in the country’s efforts to enhance energy security and reduce reliance on imports.
First output from the multi-pronged development is expected by early 2026, according to the French energy major.
The ambitious initiative combines large-scale gas capture, renewable generation, and water management solutions, representing one of the largest investments in Iraq’s energy sector in recent decades.
It is being developed in partnership with Iraq’s Ministry of Oil and state-owned Basra Oil Company, with the goal of unlocking resources, cutting flaring, and supporting sustainable growth in the country’s southern oilfields.
A core component of the project is the gas development and processing program, designed to capture and treat associated gas from five major oilfields in southern Iraq: West Qurna 2, Majnoon, Artawi (Ratawi), Tuba, and Luhais.
Much of this gas is currently flared, resulting in wasted energy potential and environmental impacts.
Once operational, the processing facilities will convert this byproduct into usable fuel, directly bolstering Iraq’s domestic gas supply for power generation.
By expanding local gas output, the project aims to sharply reduce Iraq’s dependence on Iranian imports of gas and electricity, which currently play a critical role in meeting the country’s power demand.
Officials have long sought to diversify supply, in part to mitigate exposure to seasonal shortages and geopolitical pressures.
Another key pillar is the Common Seawater Supply Project (CSSP), a large-scale water management undertaking that will deliver treated seawater from the Gulf to feed injection networks across the southern oilfields.
Water injection is essential for maintaining reservoir pressure and sustaining production rates at mature oilfields.
By using seawater instead of scarce freshwater, the CSSP will free up valuable inland water resources for agriculture and communities in the region.
The CSSP will incorporate advanced treatment facilities to ensure water quality meets stringent operational standards before injection.
The project’s scale is substantial, involving tens of millions of cubic metres of water annually, and is seen as vital to enabling Iraq’s upstream growth plans while improving water sustainability.
In parallel, TotalEnergies is leading investments in renewable power to feed operations, aiming to reduce the carbon intensity of the development.
Solar capacity included in the project will also supply the local grid, supporting Iraq’s broader renewable energy targets.
TotalEnergies Chairman and CEO Patrick Pouyanné has previously described the Iraq program as a model for integrated, multi-resource energy development that addresses both near-term energy shortages and longer-term climate obligations.
The coordinated approach — spanning gas capture, water management, and renewable generation — is intended to improve energy system resilience while delivering socio-economic benefits.
With engineering, procurement, and construction activities now fully underway, the next 12 to 18 months will be critical as the project moves toward its initial production targets in early 2026.
Success in this venture is likely to carry strategic implications for Iraq’s energy mix, environmental performance, and fiscal stability, while sending a strong signal to international investors about the potential for large-scale development in the country’s oil and gas sector.
