INTERACTIVE: Harnessing flared gas in Iraq

Iraq stands at a critical energy crossroads, facing significant energy challenges alongside its immense energy wealth. Consistently ranking among the top three global gas flarers, Iraq burns approximately 17-18 billion cubic meters (bcm) of associated natural gas annually—a volume roughly equivalent to its entire domestic gas consumption and more than double its actual, costly gas imports from Iran. Capturing this flared gas presents an economic and environmental opportunity. While Iraq pays a premium for unreliable imported gas (around $8 per MMBtu), it flares a domestic resource that could be captured and processed for an estimated cost of around $2 per MMBtu, representing a potential lost revenue exceeding $1 billion.

The strategic solution: A focused, hub-based approach

Recognizing this critical inefficiency, the Iraqi government has set an ambitious national target to eliminate routine gas flaring by 2028

This goal is underpinned by a technically feasible and focused strategy: tackling the problem where it is most concentrated. The vast majority of flaring occurs at a handful of giant oil fields in the country's southern and northern regions

The core of Iraq's solution involves a multi-billion-dollar investment by IOC’s in developing integrated gas processing hubs to capture this wasted resource. Key projects already underway, such as the Basra Gas Company's (BGC) BNGL expansion, which saw a new dry gas unit inaugurated on July 24, 2025, TotalEnergies' Gas Growth Integrated Project (GGIP), the newly operational Halfaya Gas Plant, and the upcoming Nasiriyah GPP, are designed to add over 1.5 billion cubic feet per day (Bcf/d) of new gas processing capacity, directly targeting the largest sources of flaring.

Dependencies for success beyond infrastructure

While this infrastructure build-out provides a clear physical pathway to end flaring, hardware alone is insufficient. The success of Iraq's 2028 ambition hinges on overcoming challenges that have caused previous deadlines to shift. Timely execution of these complex infrastructure projects is paramount. Furthermore, Iraq's strategy includes the parallel development of its non-associated gas fields to further bolster domestic supply and reduce import dependency in the medium term 

Crucially, these physical developments must be supported by a robust and enforceable policy framework. This requires moving beyond nominal directives to implement binding anti-flaring legislation with meaningful financial penalties. It also necessitates reforming legacy service contracts that often fail to incentivize gas capture, creating clear commercial and legal drivers   for all operators to prioritize flaring reduction. Addressing country-specific risks through improved governance and a stable investment climate is essential to attract the necessary international partnerships and expertise.

Conclusion: A path to energy independence

Harnessing its flared gas offers Iraq a transformative opportunity to solve its chronic power shortages, achieve energy security, and build a foundation for economic diversification. The strategy is clear and the necessary projects are in motion. However, realizing this potential requires more than steel and pipelines; it demands sustained political will, effective policy enforcement, and a stable environment for investment. By successfully aligning its infrastructure build-out with critical policy and commercial reforms, Iraq can finally turn a symbol of waste into a cornerstone of its future prosperity.

Check out the full report here.