Iraq's Energy Drive: What Russia Ties and Gas Capture Mean for Investors

Iraq is making significant strides in its energy sector, with gas utilisation rates climbing to around 70% in 2025 from 53% in 2022 (Pukmedia). This progress comes as Baghdad deepens energy ties with global players, including Russia, signalling a strategic shift to harness its vast natural resources. For your business and the wider region, these developments mean new investment opportunities, reduced reliance on imported fuel, and a more stable energy supply.

Why Iraq is eyeing closer energy ties with Russia

Iraq's Deputy Oil Minister for Gas Affairs, Izzat Saber Ismail, met with Russian President Vladimir Putin in Moscow in October 2026 (Ina). The meeting, held on the sidelines of the 8th Gas Exporting Countries Forum (GECF) Summit, underscored Iraq's interest in enhancing cooperation across its oil and gas sectors (Ina).

Baghdad aims to leverage Russia's advanced expertise and technology, seeking partnerships and joint projects to better utilise its natural resources and develop its energy infrastructure (Ina). This engagement is part of a broader strategy to expand investment opportunities in gas processing, transportation, and infrastructure development (Ina). Russia also used the forum to discuss joint oil and gas ventures with Iran (Iranintl).

How Iraq is tackling gas flaring

Iraq has notably increased its associated gas utilisation rate, moving from approximately 53% in 2022 to about 70% in 2025 (Pukmedia). This is a crucial step towards addressing the significant waste and environmental pollution caused by gas flaring, which previously saw Iraq rank as the second-worst country globally for flaring after Russia (Pukmedia).

The Iraqi Ministry of Oil is currently implementing four major projects designed to capture and utilise up to 1.4 billion cubic feet per day (bcf/d) of associated gas. These include:

• Artawi (600 million cubic feet per day (mmcf/d) in two phases)
• Bin Omar (300 mmcf/d)
• Nasiriyah (200 mmcf/d)
• Halfaya (300 mmcf/d) (Iraqinews)

A key part of this effort is the Gas Growth Integrated Project (GGIP), a $27 billion initiative involving TotalEnergies (45%), Basra Oil Company (30%), and QatarEnergy (25%) (Egyptoil-gas). The GGIP began its first production in early 2026, processing associated gas and generating electricity for 1.5 million Iraqi households (Egyptoil-gas). The Gas Midstream Project (GMP) at the Ratawi field, part of the GGIP, is 36% complete as of October 2026 (Iraqinews). Its first phase will process 300 million standard cubic feet of raw gas per day, with a second phase adding equivalent capacity (Iraqinews).

Looking ahead, Iraq plans to capture an additional 80 million standard cubic feet of gas per day from northern oil fields by the end of 2026 (Pukmedia). The North Oil Company aims to eliminate gas flaring across its operations by the end of 2027 (Pukmedia). The national target is to eliminate routine gas flaring entirely by the end of 2028 or 2029 (OilPrice.com, Theinsightinternational). This effort is vital for supplying fuel to domestic power generation and local industries, reducing reliance on expensive Iranian gas imports, and mitigating environmental impacts. You can read more about Iraq's broader oil strategy here: Iraq's Oil Output Hits 2026 High and Iraq's $24 Billion 'Development Road'.

What new investment events mean for your business

Iraq is actively positioning itself as a hub for energy investment, hosting several major events in Baghdad to attract international partners. These include:

• Iraq International Oil, Gas and Petroleum Projects Exhibition & Conference 2026: Scheduled for September 8-11, 2026, at the Baghdad International Fair (Alwassatiq).
• OIGATECH - Iraq Oil and Gas Technology Exhibition 2026: Taking place from December 13-16, 2026, at the Baghdad International Fairground, with the Iraqi Ministry of Oil as the exclusive host (Ina).

These platforms are designed to foster global partnerships, showcase cutting-edge technologies, and explore new technical and operational solutions across the electricity, oil, gas, and renewable energy sectors (Alwassatiq, Ina). They aim to strengthen Iraq's energy transition, improve water security, and stimulate investment (Ina). For investors, these events offer direct access to leading National Oil Companies (NOCs), International Oil Companies (IOCs), policymakers, and experts from around the world (Alwassatiq, Ina).

While Iraq's economy remains heavily reliant on oil, accounting for over 90% of the federal budget and 91% of merchandise exports (Gedeth), the government is actively working to diversify its revenue streams (Gedeth). It aims to generate 12,000 megawatts from renewable sources by 2030 (Gedeth). However, foreign investors still face challenges, including contract disputes, corruption, frequently changing regulations, and security concerns (Gedeth).

The bottom line

Iraq's determined push to capture associated gas and forge international energy partnerships, including with Russia, marks a critical turning point for its economy. These efforts promise to boost domestic power generation, cut costly imports, and open new avenues for foreign investment in a sector vital to the region's energy future.

This article is for information only and is not financial advice.