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By John Lee.

The Iraqi Council of Ministers has authorised the Ministry of Electricity to award and sign an EPC contract for the Dora [Doura] Thermal Power Plant project in Baghdad, valued at $480 million (excluding supervision and monitoring costs).

As part of the agreement, the contractor will waive its claim to a sovereign payment guarantee of $808.345 million, previously issued by the Ministry of Finance.

The contract is exempt from standard government procurement rules under the Federal Budget Execution Law and Government Contract Execution Instructions (No. 2 of 2014).

A statement from the Prime Minister's Office did not mention the company involved, but in December Iraq's Minister of Electricity chaired a technical meeting with with a delegation from a company named as "Ethios Energy" to expedite the rehabilitation of the plant.

(Source: PMO)

By John Lee.

Standard Chartered has successfully arranged a $95-million term loan for the Iraqi Ministry of Finance, supporting the supply of five electrical substations across northern and southern Iraq.

The financing, backed by a 100% UK Export Finance (UKEF) guarantee, covers both political and commercial risks. The Ministry of Electricity will use the funds to procure equipment from the United Kingdom, strengthening Iraq's power infrastructure. The company supplying the equipment was not disclosed.

Jamil Choucair, Chief Executive Officer, Standard Chartered, Iraq, said:

"We are delighted to support this landmark transaction, which reflects our commitment to enabling infrastructure development that drives sustainable economic growth. By working closely with the Ministry of Finance and UKEF, we are delivering tailored solutions that address Iraq's energy needs and contribute to its long-term progress."

Faruq Muhammad, Global Head of Development and Agency Finance, Standard Chartered, added:

"This financing represents our unwavering commitment to the Republic of Iraq and our dedication to enhancing the lives of its communities. With the support of our ECA partners, including UKEF, we are not only driving forward the development of key infrastructure but also fostering long-term prosperity for the country."

(Source: Standard Chartered)

By John Lee.

The International Energy Agency (IEA) has published its National Climate Resilience Assessment for Iraq:

Key Climate Trends

• Iraq's warming rate (0.48°C per decade) exceeds the global average (0.37°C).
• Projected temperature rise: 2.5°C (low-emissions) to 5.6°C (high-emissions) by 2100.
• More extreme weather: Increased droughts in the north, heavier rainfall in the south.
• Growing risk of floods due to intense rainfall after prolonged droughts.

Impact on Energy Sector

• Transmission losses among highest in the world (50-60%), straining electricity supply.
• Rising demand for air conditioning worsens grid instability during heatwaves.
• Water scarcity threatens gas-fired plants and oil & gas operations.
• Sandstorms may cut solar PV output by over 60%, risking Iraq's 12 GW solar target.

Necessary Interventions

• Strengthening infrastructure: Upgrading power plants and refining operations.
• Developing microgrids for energy security during disruptions.
• Diversifying energy sources and integrating climate resilience into policy.
• Enhancing disaster risk management to protect critical infrastructure.

Click here to read the full report.

(Source: IEA)

By John Lee.

Gas production at Khor Mor's KM250 expansion is expected to start in Q2 2026.

In its results for FY 2024, Dana Gas said:

"In September 2024, Pearl Petroleum took over full responsibility for the KM250 expansion project following the termination of the original EPC contractor. Construction resumed fully in December and the project is now scheduled to achieve first gas by Q2 2026. Once operational, KM250 will add processing capacity for an additional 250 MMscf/d of gas, significantly boosting
Company's cashflows and financial performance.

"Khor Mor facilities currently supply more than 500 mmscf/d of gas to four power stations and enables the generation of approximately 2,800 MW of electricity which constitutes more than 75% of the KRI's power generation. This supply of steady and affordable gas, results in significant fuel cost savings and affordable electricity for millions of Iraqis in the KRI and neighboring governorates, benefiting the whole of Iraq. Once completed, additional gas supplied by the KM250 project to the region's power stations will play a vital role towards further supporting the economic development across the KRI and Iraq."

(Source: Dana Gas)

By John Lee.

The Iraqi Ministry of Electricity has signed three contracts with Linxon to rehabilitate key 400 kV BSP stations in Baghdad and Diyala as part of the Iraqi Electrical Super Grid.

The agreements, funded by SEK and EKN loans, were signed by Riyad Uraibi Muklf, General Director of the General Company for Electrical Energy Transmission in the Middle Region, and Hassan Merhi, Linxon's Managing Director for the Middle East and Asia Pacific.

The project, initiated under the directives of Minister of Electricity Zeyad Ali Fadhil, includes upgrades at North Baghdad, South Baghdad, and Diyala 400 kV BSP stations.

Rehabilitation efforts will modernise electrical equipment, enhance protection and control systems, and improve infrastructure to ensure reliable operation of Iraq's power transmission network.

Linxon is a joint venture between AtkinsRéalis (formerly SNC Lavalin) and Hitachi Energy.

(Source: Linxon)

By John Lee.

Iraq's Ministry of Electricity and GE Vernova have completed upgrades at multiple power plants, enhancing Iraq's electricity infrastructure.

The project covers 46 gas turbines across 12 sites, expected to add up to 500 MW to the national grid by summer 2025.

Several plants, including Ninawa, Al-Diwaniyah, Hilla, and Karbala, have transitioned from heavy fuel oil to natural gas, increasing capacity by 260 MW.

Additional modernisations will add a further 250 MW. Advanced Gas Path (AGP) and MXLII upgrades at Al-Quds, Dhiqar, and Al Mansouriya plants will improve efficiency by up to 6%.

Under a 2024 services agreement, GE Vernova has also completed maintenance projects covering 3.7 GW at sites such as Qayyarah and Baghdad South to improve long-term reliability.

(Source: GE Vernova)

From Kurdistan24. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Trump Cancels US Exemption for Iraq to Import Electricity and Gas from Iran

US President Donald Trump on Wednesday revoked Iraq's exemption to import electricity and gas from Iran, reinforcing Washington's campaign of maximum pressure on Tehran.

This decision comes as part of a new package of sanctions targeting Iran's energy sector and its broader economic ties.

Click here to read the full article.

By John Lee.

The Iraqi Council of Ministers has approved the Waste-to-Energy Power Generation Project in Nahrawan, Baghdad, awarding it to the Chinese company Shanghai SUS Environment.

The project will have a two-year construction period and a 25-year investment term. The National Investment Commission (NIC) will issue the investment licence and finalise the contract.

The Baghdad Municipality will provide 3,000 tons of municipal solid waste per day and complete land allocation within six months. The energy purchase fee will be determined based on committee recommendations, covering landfill, environmental, and public health costs. Payments will be managed by the Ministries of Health, Electricity, and Environment, along with the Baghdad Municipality.

The Ministry of Electricity is required to purchase the project's energy output, with an initial cap of 100 MW. Further negotiations will be required if production exceeds this limit. The Ministry of Finance will provide necessary funding, and the Ministry of Electricity is authorised to sign the power purchase agreement.

(Source: Media Office of the Prime Minister)

From the Iraq Britain Business Council (IBBC):

How Iraq is delivering innovation through its leading businesses

Iraq is stable, its economy is expanding and diversifying to meet the needs of the people. IBBC have been asked by the Iraq Prime Minster, Mr Al Sudani, to hold a Baghdad conference on Innovation.

Following a successful visit to the UK by the Prime Minister and several of his top ministers, a significant trade deal was announced with UK and Iraq, estimated at $15bn, across several sectors, to include cutting edge technology and knowledge transfer to Iraq. Some of these companies will be speaking at the Baghdad conference and the conference is dedicated to the theme of delivering innovation.

The purpose of the conference will showcase how Iraq is currently delivering Innovation and what might be possible to do soon, with the help of the Uk and International partners. IBBC has several members already delivering innovative solutions and products in Iraq, which will be showcased at the conference. We will be examining the power of knowledge transfer across all the panels and discussing what Iraq needs to do to deliver this internally, and the benefits of delivering innovation successfully.

In his paper on 'ease of doing business in Iraq' Professor Frank Gunter, who is speaking, pointed out that modernising and digitising the financial system, not only will enable swifter transactions, access to and international funds, but also reduce the opportunities for corruption. Both EY and Hogan Lovells will explain their work on modernising the Central bank systems of Iraq and consolidation among banks and banking reforms.

1001 is a leading Anglo- Iraqi streaming company that has already signed up over 2 million subscribers, but it is focused on protecting Intellectual property in Iraq, and this is a new opportunity for Iraqis to produce content, derive income and tax receipts from subscriptions. We expect to be joined by companies discussing 5G technology, and provision of fast internet for the delivery of state-of-the-art communications and explaining the importance of cyber protection for Iraqi assets, communications, and defence.

Maritime innovation is becoming essential to Iraq as the Al Faw port opens opportunities for trade and servicing oil and gas projects in the south. Al Zaman are responding to this challenge with the construction of ship production and maintenance factories in Basra and the knowledge transfer of maritime know how from the UK to a new maritime academy in the region. Unihouse Global as innovative online and skills educators, will be training students on skills and maritime capabilities for the academy.

Innovation in energy is also critical in Iraq, not only to reduce the country's carbon footprint but also to find ways to generate more diverse sources of electricity from solar and gas to power the growing population and industries. Hydro C- are solar energy providers to the oil industries, while BP , BGC and Shell can explain how they technically capture gas for electricity that previously burned off and use technology to manage oil fields more efficiently.

Finally, Mr Jon Wilks, IBBC senior advisory and former ambassador to Iraq, will be chairing the day and contributing his insights on geo politics, placing Iraq in the regional context and explaining why technology is important to the diversification of the economy and Iraq's future development.

IBBC has invited several Government ministers to attend and join the panels.

A reception will be held on 16^th February for all delegates to network and meet the significant list of sponsors, including principal Sponsor Al Buttsan, Gold Sponsors BP, Al Zaman, SAP, Hydro-C, Al Maseer insurance; Silver sponsor SABIS, Bronze sponsor Defaf al Khaleej. Conference dinner sponsor Sardar Group, conference reception sponsor - Al Busttan and conference lunch sponsor - Iraqi Red Crescent and conference coffee break sponsor - 1001 Media. A historic tour of Baghdad is scheduled by Bil Weekend tourist company.

The conference sets out some of the innovative work IBBC members are already delivering in Iraq and will offer a template for the future.

To register, please contact us on: [email protected]

By John Lee.

Iraq's Minister of Electricity, Ziad Ali Fadhil, has signed a cooperation agreement and memorandum of understanding with U.S.-based Stellar Energy to implement strategic projects aimed at advancing Iraq's electricity sector.

The first phase of the agreement will be financed through the Export-Import Bank of the United States (EXIM Bank). This will include construction of an integrated network of substations:

• • 5 substations with a voltage of 400 kV.
  • 25 substations with a voltage of 132 kV.
  • 100 substations with a voltage of 33/11 kV.

Phase Two focuses on boosting Iraq's energy production capacity, and involves the construction of new power plants to increase the national grid's output.

In a separate statement, the Prime Minister's Office said that the agreement will be exempted from government contracting procedures, "to ensure timely completion and achieve the desired objectives. The contract will take effect upon the availability of financial allocations."

It added:

"The Council of Ministers also directed the Ministries of Finance and Planning to allocate $2 billion in the 2025 budget for the first phase of the cooperation agreement, with funding for the second phase to be included in the 2026 budget. The Minister of Electricity was granted the authority to approve and sign the cooperation agreement with Stellar Energy, exempt from government contracting instructions."

Last week, the company's Chairman, Peter Gibson, met with Prime Minister Mohammed S. Al-Sudani during his official visit to London.

(Sources: Ministry of Electricity, PMO)