Iraq fast-tracks Chinese-led gas project to curb energy imports
Shafaq News/ The Iraqi Ministry of Oil has reached an agreement with a Chinese energy firm to accelerate the development of the al-Mansouriya gas field in Diyala province—part of efforts to reduce reliance on imported fuel, a member of Iraq’s Parliamentary Finance Committee revealed on Thursday.
MP Mudar al-Karawi told Shafaq News Agency that the ministry has signed a revised deal with China's Jereh Group and state-owned PetroIraq to shorten the project timeline from 42 months to just 20 months.
“The first phase will produce 100 million standard cubic feet of gas per day (Mscfd), gradually increasing to 300 Mscfd,” al-Karawi explained.
Located in eastern Iraq near the Iranian border, the al-Mansouriya gas field is expected to play a vital role in fueling domestic power stations and trimming costly natural gas imports. Iraq currently imports gas from Iran to run much of its electricity sector.
“The locally produced gas will help reduce dependence on imported supplies and save Iraq millions of dollars annually,” al-Karawi noted.
The development is part of a wider national strategy announced by Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul-Ghani last October. The minister unveiled multiple gas and oil deals, including complementary licensing rounds, expected to boost production by over 850 Mscfd and 750,000 barrels of oil per day.
The original contract for al-Mansouriya was signed on October 31, 2024, under the supervision of the Oil Ministry, targeting a full production capacity of 300 Mscfd.
According to data from Global Fire Power, Iraq consumed over 19 billion cubic meters of natural gas in 2025, ranking 38th globally. The country's fast-growing energy demands continue to strain its power infrastructure, especially during peak summer months.
