TotalEnergies SE (NYSE: TTE) has inked a major agreement which includes several projects in the Basra region. The firm aimed to improve the growth of Iraq's natural resources to enhance the country’s electricity supply. TotalEnergies disclosed that in collaboration with Iraq authorities the firm announces the new investment.
The investment includes installations to recover gas that is being flared on three oil fields and as such supply gas to 1,5 GW of power generation capacity in a first phase increasing to 3 GW in a second phase. On the other hand, the firm will also develop 1 GWac of solar electricity generation capacity to deliver the Basra regional grid.
Distinctive Aspects of Major Agreement
It has been disclosed that these agreements cover the construction of a new gas gathering network and processing units to deliver local power stations. Moreover, the firm is also expecting to bring its expertise to enhance the oil and gas production of the Ratawi field, by creating and operating new capacities.
Furthermore, the agreement also includes the construction of a large-scale seawater treatment unit to boost water injection capacities in southern Iraq fields without adding to water intake as the country is currently experiencing a water-stress situation. Lastly, the agreements also cover the construction and use of a photovoltaic power plant with a capacity of 1 GWp to deliver electricity to the grid in the Basra region.
In addition to this, it has been disclosed that these projects constitute a total investment of approximately $10 billion (100% share). TTE aimed to back Iraq in creating a more sustainable future by developing access to electricity for its people through more sustainable use of the country’s natural resources.