Iraq: Iraq’s Ministry of Electricity has signed an agreement to construct the 3 GW Al-Faw gas-fired combined-cycle power plant in Basra, marking a major step in the country’s efforts to expand its electricity generation capacity.

According to the Iraqi News Agency (INA), the contract was concluded between the Southern Power Production General Company and Advanced Technology Systems Company, both Iraqi entities, with implementation to be carried out by US-based General Electric (GE). The investment is planned to span 25 years, the Minister of Electricity confirmed.

The project will operate under a “Take and Pay” model, meaning the government will pay only for the power it actually receives. The facility will include four gas turbines and two steam units, designed to enhance efficiency and reliability.

Located near the Grand Faw Port and connected to the new Wafra–Faw interconnection line with Kuwait, the plant will strengthen Iraq’s grid infrastructure and help position Basra as a future regional energy hub.

This agreement follows Iraq’s broader strategy to modernise its power sector. Earlier this month, the government signed a deal with GE Vernova to develop 24 GW of new CCGT capacity and a separate 14 GW agreement with Siemens Energy, underscoring the country’s push to diversify and expand its energy partnerships.

Source: Enerdata

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