QatarEnergy and TotalEnergies Partner for a Groundbreaking Solar Initiative in Iraq
In a significant move towards renewable energy, QatarEnergy has announced a partnership with TotalEnergies to develop one of the world’s largest solar power projects in Iraq. This initiative is part of the broader Gas Growth Integrated Project (GGIP), which aims to enhance Iraq’s energy landscape while promoting sustainable practices. With an ambitious plan to install 2 million high-efficiency bifacial solar panels on single-axis trackers, this project is set to revolutionize the region’s electricity generation capabilities.
Project Overview
The solar power project, once completed, is expected to generate up to 1.25 gigawatts (peak) of solar energy, enough to power approximately 350,000 homes in Iraq’s Basra region. The development will unfold in phases, with operations anticipated to commence between 2025 and 2027. This initiative not only underscores QatarEnergy’s commitment to diversifying energy sources but also highlights the growing importance of solar power in the global energy mix.
H.E. Minister of State for Energy Affairs and QatarEnergy’s President and CEO, Saad bin Sherida Al Kaabi, expressed enthusiasm about the partnership with TotalEnergies, emphasizing its significance for Iraq’s energy future. The collaboration aims to leverage both companies’ expertise to ensure the successful execution of this monumental project.
Consortium Involvement in the Gas Growth Integrated Project
In June 2023, QatarEnergy joined a consortium for the Gas Growth Integrated Project, holding a 25 percent stake alongside TotalEnergies (45 percent) and Iraq’s Basra Oil Company (30 percent). This strategic endeavor focuses on designing and constructing facilities to develop Iraq’s natural resources, particularly in recovering substantial volumes of flared gas for power generation. The GGIP is a crucial step towards enhancing Iraq’s energy infrastructure and reducing its reliance on traditional fossil fuels.
Long-term Agreement with Shell
In addition to the solar initiative, QatarEnergy has also secured a long-term naphtha supply agreement with Shell International Eastern Trading Company. This 20-year contract, which begins in April 2025, outlines the delivery of up to 18 million tons of naphtha to Shell. The partnership between QatarEnergy and Shell has been characterized by multiple joint investments in the energy sector, both domestically and internationally, further solidifying their strategic alliance.
Expansion of LNG Fleet
QatarEnergy is not only focusing on solar energy but is also expanding its liquefied natural gas (LNG) fleet. In September 2024, the company finalized a contract with the China State Shipbuilding Corporation (CSSC) for the construction of six advanced QC-Max vessels. This agreement brings the total number of LNG vessels ordered under its fleet expansion initiative to 128, including 24 QC-Max mega vessels. The QC-Max vessels, known for their impressive capacity of 271,000 cubic meters, are set to be delivered between 2028 and 2031, underscoring QatarEnergy’s commitment to quality and reliability in its operations.
New Urea Production Complex
In a bid to enhance agricultural productivity and contribute to global food security, QatarEnergy has announced plans to build a new large-scale urea production complex. This ambitious project will significantly increase the country’s urea output and involve the establishment of three ammonia production lines to supply feedstock for four new urea production trains, all situated in Mesaieed Industrial City. This initiative reflects QatarEnergy’s commitment to diversifying its portfolio and supporting sustainable agricultural practices.
LNG Supply Agreement with Kuwait
Further strengthening its regional ties, QatarEnergy signed a 15-year Liquefied Natural Gas (LNG) Sale and Purchase Agreement (SPA) with the Kuwait Petroleum Corporation (KPC) in August 2024. This agreement entails the supply of up to 3 million tons per annum (MTPA) of LNG to Kuwait, with deliveries starting in January 2025. This marks the second long-term LNG SPA between QatarEnergy and KPC, reinforcing the bilateral trade relations between the two nations.
Conclusion
The partnership between QatarEnergy and TotalEnergies for the solar power initiative in Iraq is a testament to the growing shift towards renewable energy sources in the Middle East. As the world grapples with the challenges of climate change and energy sustainability, projects like these are crucial in paving the way for a greener future. With significant investments in solar energy, LNG, and agricultural production, QatarEnergy is positioning itself as a leader in the energy transition, not just in the region but globally. As the project unfolds, it will undoubtedly serve as a model for future renewable energy initiatives worldwide.