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Dubai opens prequalification for Jebel Ali STP expansion Administrator13 May 2026
Dubai Municipality has issued a request for qualifications for the Jebel Ali sewerage treatment plant (STP) expansion – phase 3 project.
The DS150/3 project will be delivered under a public-private partnership (PPP) model on a design, build, finance, own, operate and transfer basis.
The project involves the development of a new water resource recovery facility with an ultimate treatment capacity of up to 1 million cubic metres a day (cm/d).
It is being procured through Dubai Municipality’s Sewerage and Recycled Water Projects Department and will be delivered through a two-stage operational approach over a 30-year concession period.
The bid submission deadline is 18 June.
UK-headquartered Deloitte is acting as financial adviser, Aecom as technical adviser and CMS as legal adviser.
Dubai Municipality said the project will also include additional land uses and community-focused amenities as part of broader sustainability and urban integration objectives.
Phase one and two expansion
In April, the deadline was extended for contractors to submit bids for an engineering, procurement and construction (EPC) contract covering the expansion of the Jebel Ali STP phases one and two.
Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.
The upgraded facility will be capable of treating an additional sewage flow of 100,000 cm/d, with the expansion estimated to cost $300m.
The new bid submission deadline is 11 June.
UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.
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Iraq LNG project delayed until next year Administrator13 May 2026
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Iraq’s first liquefied natural gas (LNG) import terminal, which has an estimated project value of $450m, is now expected to become operational in 2027 due to delays caused by the regional war and disruption to shipping through the Strait of Hormuz.
Work on jetty reinforcement and fixed terminal infrastructure at the Port of Khor Al-Zubair has been delayed, according to a statement from US-based Excelerate Energy, which is contracted to develop the facility.
In its statement, the company said: “We are revising our full-year guidance to reflect the delayed startup of our Iraq terminal due to the ongoing conflict in the Middle East.”
It added: “The Iraq project fundamentals remain unchanged. Looking ahead, we continue to have confidence in our sequenced earnings growth through 2028.”
In October 2025, Excelerate signed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first LNG import terminal.
The integrated project includes a five-year agreement for regasification services and LNG supply, with extension options, and a minimum contracted offtake of 250 million standard cubic feet a day (cf/d).
Excelerate said: “Jetty reinforcement and construction of the fixed terminal infrastructure have been delayed temporarily due to the conflict in the Middle East and the terminal is no longer expected to commence operations in the third quarter of 2026 as previously disclosed.
“Project startup is now expected in 2027. The long-term fundamentals supporting the project remain unchanged, driven by chronic power shortages and limited domestic gas processing capacity in Iraq.
“Current conditions further reinforce the country’s need for reliable and scalable LNG import infrastructure and construction will resume as conditions allow.”
Earlier this year, Iraq’s Ministry of Electricity said that the terminal was on track to come online on 1 June, ahead of expected gas shortages during the summer months.
Then, in late April, the ministry said the project had been delayed by several months and was expected to come online in August at the earliest.
Although Iraq is Opec’s second-largest oil producer after Saudi Arabia, it is a net natural gas importer because its lack of infrastructure investment has meant that, until 2023, it flared roughly half of the estimated 3.12 billion cf/d of gas produced in association with crude oil.
Iraq’s reliance on flaring associated gas instead of gathering and processing it has prevented the country from fully realising its potential as a gas producer and forced the Iraqi government to rely on costly gas and electricity imports from Iran.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16803348/main.jpg -
Algeria turns the GCC oil crisis into an economic opportunity Administrator13 May 2026
Commentary
Wil Crisp
Oil & gas reporterAlgeria’s state-owned oil and gas company, Sonatrach, is taking advantage of concerns about global gas and crude supplies to sign deals and push ahead with major upstream projects.
In recent weeks, the country has launched an oil and gas licensing round, taken steps to boost crude production in the short term and awarded a $1.1bn oil and gas field development project.
This comes as shipping remains disrupted through the Strait of Hormuz, a key global oil and gas supply route. The disruption began after the US and Israel attacked Iran on 28 February 2026, triggering a regional war.
Algeria’s ramp-up in activity puts it in a stronger position to benefit from higher global energy prices than neighbouring Libya, despite Libya holding Africa’s largest proven oil reserves.
Libya challenges
In Libya, officials have sought to advance oil and gas projects, but the business environment remains challenging due to recurring violence and deep political divisions.
Last month, Libya’s rival legislative bodies approved a unified state budget for the first time in more than 13 years. The Central Bank of Libya confirmed on 11 April that both chambers had endorsed the budget, calling it a key step towards restoring financial stability after prolonged division.
Contractors expected the agreement to accelerate project activity, but so far the deal has yet to translate into meaningful progress on the ground. Earlier this month, MEED reported that Libya’s state-owned National Oil Corporation (NOC) had not yet provided subsidiaries with details of their funding allocations under the new budget.
Libya’s downstream sector was also disrupted this month by a fresh outbreak of violence. On 8 May, military clashes damaged buildings and vehicles, and forced the country’s largest operating refinery and a nearby oil port to shut for two days. On 10 May, Azzawiya Oil Refining Company, operator of the Zawiya facility, said it had lifted the state of emergency, allowing work to resume.
Algeria momentum
While Libya has struggled to capitalise on the current period of higher oil and gas prices, Algeria has significantly increased activity across its hydrocarbons sector.
Last month, Algeria launched a new bid round offering seven exploration blocks to international companies. The round was launched by the National Agency for the Valorisation of Hydrocarbon Resources (Alnaft), which regulates the upstream sector. The blocks are located in Ouargla, Illizi, Touggourt and El-Bayadh.
In parallel, Algeria is implementing short-term measures to raise output. On 3 May, the Ministry of Oil & Gas said the country plans to increase average production by 6,000 barrels a day in June.
Algeria is also pursuing regional export opportunities. Earlier this month, officials signed a framework agreement to enable crude supplies from Algeria to Egypt.
Turkiye has also announced plans to renew and expand its liquefied natural gas (LNG) agreement with Algeria. Turkiye’s Energy and Natural Resources Minister Alparslan Bayraktar said on 8 May that annual volumes could rise to 6.5 billion cubic metres, up from the current 4.4 billion cubic metres a year. The existing agreement is due to expire in September 2027.
Another sign of momentum is the award of a $1.1bn contract for phase two of the Hassi Bir Rekaiz oil and gas field development. The contract was signed by Egypt’s Petrojet and Italian engineering and contracting company Arkad. Petrojet’s share is estimated at about $600m and Arkad’s at about $500m. The client is Groupement HBR, a joint venture of Sonatrach and Thailand’s PTTEP.
Overall, while Libya continues to face obstacles to building sustained momentum in its oil and gas sector, Algeria is pursuing multiple initiatives that are likely to deliver economic benefits in the short, medium and long term.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16803345/main4150.jpg -
Chinese-Saudi joint venture to build $566m copper plant Administrator12 May 2026
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Saudi Arabia-based industrial investment company Rawas and China’s Zhejiang Hailiang Company have signed a joint-venture agreement to establish a copper products manufacturing plant in the kingdom.
The joint venture, in which Zhejiang Hailiang will hold 51% and Rawas 49%, plans to invest about $566m in the facility, which will be built near Dammam port in Saudi Arabia’s Eastern Province.
The factory will be developed in two phases, with total production capacity projected at 150,000 tonnes a year (t/y). This includes 30,000 t/y of copper tubes, 20,000 t/y of copper busbars, 50,000 t/y of refined recycled copper and 50,000 t/y of copper foil.
“The project will fully leverage Saudi Arabia’s local copper ore resources, energy cost advantages and regional policy incentives to serve markets across the Middle East, Europe and Africa,” the partners said in their statement.
Shenzhen Stock Exchange-listed Zhejiang Hailiang is a subsidiary of Hailiang Group, one of the world’s largest copper pipe manufacturers and exporters.
Rawas is based in Riyadh. Obeikan Investment Group and Al-Khorayef Group are among its founding shareholders, while other investors include Al-Muhaidib Group and Mohammed Abunayyan Investment Group.
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Dubai Holding increases its shareholding in Emaar Administrator12 May 2026
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Dubai Holding and the Investment Corporation of Dubai (ICD) have completed a transaction under which Dubai Holding acquired a 22.27% equity stake in the private real estate developer Emaar Properties from ICD.
Following the transaction, Dubai Holding’s total shareholding in Emaar Properties has risen to 29.73%, making it the company’s largest shareholder.
Listed on the Dubai Financial Market, Emaar Properties is among the region’s leading real estate developers, with a portfolio spanning residential, commercial, hospitality and retail assets. The firm has a presence across the Middle East, North Africa, Asia and Europe.
In a statement, Dubai Holding said that the acquisition is a strategic investment that underscores Dubai Holding’s confidence in Emaar Properties’ market position, asset quality and long-term growth outlook, as well as the resilience of Dubai’s economy and real estate sector.
Dubai Holding’s latest investment follows the incorporation of local real estate bodies Nakheel and Meydan into the Dubai Holding Group in 2024.
Since its establishment in 2004, Dubai Holding Group has created a portfolio of companies, including Jumeirah Group, Dubai Properties and Tecom Group. Tecom Group owns and operates several clusters in Dubai, including Dubai Internet City and Dubai Media City.
Nakheel and Meydan are among Dubai’s major real estate developers, with developments including Palm Jumeirah, Palm Jebel Ali, Meydan One, Tilal Al-Furjan, Mohammed Bin Rashid City and Dubai Islands.
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Momentum builds in Iraq’s post-war construction sector Administrator12 May 2026
In October last year, Iraq awarded an estimated $764m contract to develop Baghdad International airport on a public-private partnership (PPP) basis to a consortium comprising Luxembourg-based Corporacion America Airports and local firm Amwaj International.
The move is the latest sign of international investors’ growing appetite for projects in Iraq as part of the country’s post-war reconstruction drive.
Iraq has been recovering gradually since the war. Initially, the government prioritised infrastructure and public housing to stimulate economic growth, improve living standards and attract foreign investment.
More recently, benefiting from higher oil prices and a period of relatively stable governance, Baghdad has expanded its focus to reconstructing and modernising the country’s deteriorating infrastructure.
Looking ahead, Iraq’s construction industry is expected to register an average annual growth rate of 4.8% between 2025 and 2028, supported by further investment in energy, infrastructure and housing projects, according to UK analytics firm GlobalData.
Real estate projects
Iraq plans to develop more than 21 residential cities across the country. According to local media reports published in May, Iraq’s Ministry of Construction & Housing said the projects are being developed in co-operation with private real estate developers.
The report added that the residential cities are located in Baghdad, Mosul, Karbala, Babylon, Basra, Najaf, Dhi Qar, Maysan and Wasit.
Another major announcement came in October last year, when UAE-based developer Damac Properties launched the Damac Hills Baghdad masterplanned community, its first real estate project in Iraq.
Damac Hills Baghdad forms part of a larger development spanning 6.2 million square metres (sq m). The community is located near Abbas Ibn Firnas Square, close to Baghdad International airport.
The project is in line with the Iraq National Investment Commission’s drive to attract greater foreign investment into the country.
The latest foreign investment-backed scheme follows Egyptian real estate developer Ora Developers beginning construction last year on the Al-Wardi residential city project. The development will include more than 100,000 residential units covering about 61 million sq m on the southeastern side of Baghdad.
Last year, another Egyptian firm, Talaat Moustafa Group Holding, said it was in negotiations with the National Investment Commission to develop a mixed-use project. Covering an area of about 14 million sq m and located southwest of Baghdad, the project is expected to include about 45,000 residential units.
In 2024, Abu Dhabi-based developer Eagle Hills announced that it had secured land for a $1.5bn project in Baghdad that will include a golf course, residential components, a five-star hotel, a spa and a resort club.
These projects continue the trend of renewed confidence among international investors in Iraq’s construction sector.
Transport schemes
In addition to the Baghdad International airport PPP award, Iraq has recently accelerated plans to develop the country’s wider infrastructure network.
Earlier this year, Iraq announced that it would redesign the long-delayed Baghdad Metro project in a bid to reduce capital expenditure on the project.
According to media reports, earlier proposals relied heavily on underground construction, making the project economically unviable.
Last year, Iraq’s Ministry of Transport announced plans to build the Basra-Shalamcheh railway project, a 36-kilometre cross-border rail link connecting Iraq and Iran.
In the ports sector, Iraq’s Aloreen Company for Investments secured up to $120m in financing in March from the International Finance Corporation, part of the World Bank Group, to expand the container-dedicated Terminal 2 at Umm Qasr Port in southern Iraq.
Located about 70km south of Basra, Umm Qasr Port is Iraq’s main maritime gateway and its only deep-water port, handling most of the country’s containerised and general cargo.
In October, Iraq said it would select three firms from an 11-company shortlist to manage and operate Al-Faw Grand Port, located in the southern city of Basra.
The first phase of the project is scheduled for completion by the end of this year, while the second phase is expected to be completed by 2029.
Projects pipeline
Iraq has about $96bn-worth of projects in the planning and pre-execution stages across its construction and transport sectors.
The construction sector accounts for about $69bn of this pipeline, while the transport sector has projects valued at around $17bn.
The short-term outlook for both sectors remains positive, with the government committed to economic revitalisation through infrastructure projects.
These initiatives are expected to attract investors, create local employment opportunities and generate significant revenues. At the same time, securing funding for major metro and airport developments will be important in maintaining investor confidence.
Further investment, together with continued political stability and clearer regulatory frameworks, will be vital if the government is to achieve its goals, sustain the country’s recovery and support long-term economic expansion.
MEED’s June 2026 report on Iraq also includes:
> OVERVIEW: Iraq enters era of resilience, reform and rising risks
> OIL & GAS: Iraqi oil and gas sector in crisis
> POWER & WATER: Focus shifts to delivery of Iraq utilities expansionhttps://image.digitalinsightresearch.in/uploads/NewsArticle/16799444/main.gif -
Aramco logs $12.1bn in Q1 2026 spending Administrator12 May 2026
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Saudi Aramco registered capital expenditure of $12.094bn in the first quarter of 2026, which it said “supports growth objectives”. The Saudi energy giant had earlier offered a capex guidance of $50bn to $55bn for this year.
Aramco’s capex in Q1 2026 is down 4% from its spending level in the same period last year. The company spent $13.37bn in the fourth quarter of 2025 and a total of $52.2bn for the full year.
Offshore oil and gas projects are understood to have accounted for a chunk of Aramco’s capex in the first quarter of the year.
MEED in January this year reported that Aramco had selected US-based McDermott International for Contract Release and Purchase Order (CRPO) number 166. The scope of work on the tender is understood to have been carved out of the major $15bn Marjan offshore field development project, as part of which Aramco awarded contracts for 20 engineering, procurement, construction and installation (EPCI) packages in 2019. McDermott won the largest share of work on the project, with an estimated $4.5bn-worth of contracts secured for two packages.
The contract for CRPO 166 was single-sourced to McDermott without a competitive tendering process, and issued as a change order, sources told MEED.
Aramco then awarded its second offshore contract of this year, CRPO 156, to Italian contractor Saipem. The scope of work on the contract covers the EPCI of a 48-inch trunkline, covering a distance of roughly 65km offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility, plus associated structures such as subsea hook-ups.
CRPO 156, valued at about $500m, comprises the third package in Aramco’s latest expansion phase at Safaniya – the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.
Saipem also won the other two contracts for the Safaniya field expansion project – CRPOs 154 and 155 – with the Milan-headquartered firm declaring their combined value to be approximately $400m.
Upstream projects dominate capex
The upstream oil and gas sector dominated Aramco’s spending last year, accounting for $37.75bn, or about 72%, of the company’s total capex in 2025.
In its financial statement for full-year 2025, Aramco announced the commissioning of the Marjan crude oil increment programme and the Berri increment programme, “supporting flexibility and ability to respond to changing market conditions”, as it strives to maintain its oil spare production capacity at 12 million b/d over the long term.
Aramco awarded a total of 34 contracts in 2019, cumulatively worth $18bn, for its multibillion-dollar Marjan and Berri oil and gas field development projects. The objective of the two schemes is to boost the combined production capacity of the Marjan and Berri offshore field developments by 550,000 b/d of Arabian Crude Oil and 2.5 billion cubic feet of gas a day (cf/d).
In its 2025 financial results, Aramco also said “progress continues towards sales gas production capacity increase of approximately 80% by 2030, from 2021 production levels,” which would help the company reach approximately 6 million barrels of oil equivalent per day of total gas and associated liquids production.
The world’s largest-listed company announced the start of gas production from the massive Jafurah unconventional resource base, located in Saudi Arabia’s Eastern Province, in December last year.
The greenfield Jafurah gas processing plant online, with a production capacity of 450 million cf/d, represents the first phase of Aramco’s estimated $100bn capital expenditure programme to produce gas from the Jafurah basin – the largest liquid-rich shale gas play in the Middle East, spanning around 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.
Also in December, Aramco said it began operations at its Tanajib gas plant, which is part of the Marjan crude increment programme. The plant has a capacity to process 2.6 billion cf/d of associated raw gas feedstock from the Marjan, Safaniya and Zuluf offshore fields.
“The Tanajib gas plant is a key component of Aramco’s strategy to increase gas processing capabilities and diversify its energy product portfolio, helping to support long-term economic growth. The plant features digital integration, enhanced operational efficiency, complex project delivery and maximum resource utilisation,” the world’s largest oil exporter said in an earlier statement.
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Orasqualia signs Egypt biogas plant deal Administrator12 May 2026
A joint venture of Egypt’s Orascom Construction and Spain-headquartered Aqualia has signed an agreement with Egypt’s New Urban Communities Authority to implement a biogas power generation unit at the New Cairo wastewater treatment plant (WWTP).
The Orasqualia joint venture will develop a facility to convert wastewater-derived biogas into renewable energy. The project is expected to cover 60%-70% of the plant’s electricity demand, equivalent to about 13,140 megawatt-hours a year.
The biogas unit will be integrated into the existing New Cairo WWTP, which has been operational since 2013 as Egypt’s first public-private partnership wastewater project.
The scope of works includes the construction of a biogas plant, sludge digestion systems for methane production, biogas-fired generators, organic fertiliser processing units, and associated electrical and control systems.
The project, estimated to cost $40m, is also expected to improve operational efficiency and reduce operating costs at the facility.
According to MEED Projects data, Aqualia has served as the main contractor on at least eight major desalination and treatment projects across Egypt, Tunisia and Algeria.
A joint venture of Orascom and Aqualia previously signed a $320m engineering, procurement and construction contract for the Abu Rawash WWTP expansion project in Giza, which was completed in 2022.
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PIF firm appoints Porta Jeddah project contractor Administrator12 May 2026
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Saudi Real Estate Company (Al-Akaria), backed by Saudi Arabia’s Public Investment Fund (PIF), has appointed Riyadh-based Mobco Civil Construction as the main contractor for its Porta Jeddah project.
According to a notice published on the Saudi Stock Exchange (Tadawul), the contract is valued at SR463m ($123m).
The mixed-use development will have a built-up area of about 123,000 square metres. The project includes the construction of a four-star hotel, an office building, two retail and food-and-beverage buildings, a leisure and cinema building, open areas and associated infrastructure.
The development is located in Jeddah’s Al-Nahda district.
London-headquartered Chapman Taylor is the project architect, and Jeddah-based Burouj Engineering Consultant is the project consultant.
In March 2024, MEED exclusively reported that Al-Akaria had issued the main contract tender, inviting firms to bid.
Earlier, in June 2023, Al-Akaria signed an agreement with US-based Hilton to operate and manage the Canopy by Hilton hotel within the Porta Jeddah development. The property will have 183 keys, including 55 serviced apartments, as well as retail outlets, meeting spaces, and leisure and sports facilities.
GlobalData expects the Saudi construction industry to record an average annual growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure, as well as the $850bn-plus gigaprojects programme.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
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Focus shifts to delivery of Iraq utilities expansion Administrator12 May 2026
Iraq’s power and water sector recorded its largest year of investment on record in 2025, with more than $17bn in combined contract awards.
Several long-planned water infrastructure schemes finally reached contract award stage amid mounting supply pressures in the south of the country and a growing reliance on new desalination projects.
Iraq awarded $10bn-worth of water infrastructure contracts between January 2025 and May 2026, according to regional projects tracker MEED Projects.
This compares with just $1.8bn in total awards across 2022, 2023 and 2024, when only one seawater desalination plant reached the contract award stage.
Desalination projects
Attention is now turning to the delivery phase of new plants led by a series of major desalination and water treatment projects in Basra governorate.
In February, Iraqi officials said the flagship $2.42bn Basra seawater desalination plant could be financed through the Iraqi-Chinese Fund, weeks after the main engineering, procurement and construction (EPC) contract was awarded to PowerChina.
Located on the Arabian Gulf coast in Al-Faw, the plant is designed to produce 1 million cubic metres a day (cm/d) of potable water. The project also includes a water transmission network supplying 11 cities and a dedicated 300MW power plant.
Baghdad had earlier announced plans for four additional desalination plants across the province in July 2025. These include the Shatt Al-Arab plant, planned to produce 120,000 cm/d of desalinated water, and the Al-Faw and Al-Siba plants, each with a capacity of 72,000 cm/d.
The joint venture of Baghdad-headquartered Al-Rida Investment Group and PowerChina has been appointed as the main contractor for each project, with construction expected to begin in the third quarter of 2026.
Additional schemes include the $72m Safwan desalination plant and the $70m Abu Flous desalination project. Abu Flous is being undertaken by the Ministry of Water Resources and is designed to have a capacity of 72,000 cm/d.
The push to advance new projects follows warnings issued last year by Iraq’s High Commission for Human Rights about a worsening humanitarian situation linked to declining river flows and rising salinity levels in the Shatt Al-Arab waterway.
Alongside municipal water projects, Iraq is also advancing large industrial water infrastructure schemes tied to the energy sector. Last August, Iraq approved the award of the Common Seawater Supply Project package for the Artawi oil field to South Korea’s Hyundai Engineering & Construction.
The estimated $3.16bn contract covers the engineering, procurement, supply, construction, commissioning and operation of a major seawater treatment facility. Construction is expected to begin in 2026, further reflecting the scale of projects now in the execution stage.
Power expansion
In parallel, Iraq’s power sector is undergoing one of its largest expansion programmes in decades as the government attempts to address chronic electricity shortages, diversify fuel sources and strengthen regional grid connectivity. Over $40bn-worth of projects are under execution, following $4.2bn in new contracts last year.
In August 2025, the Iraqi cabinet approved five major power generation schemes with a combined capacity exceeding 10GW. The projects represent one of the country’s largest-ever single rounds of power project approvals.
The centrepiece of the programme is three independent power producer (IPP) combined-cycle plants at Al-Faw, Abu Ghraib and Kirkuk, with a total capacity of 7,500MW.
The largest schemes are the 3,000MW Al-Faw plant in southern Iraq, with US-based General Electric as the EPC contractor, and the 3,000MW Abu Ghraib facility near Baghdad. Both projects will be implemented under 25-year build-own-operate models.
A 1,500MW combined-cycle plant in Kirkuk will also be developed under long-term power purchase agreements backed by sovereign guarantees from the Finance Ministry. US-based GE Vernova is the technology provider for all three projects.
Furthermore, the government has approved two thermal power plants in Najaf and Youssifiyah, with planned capacities of 1,500MW and 1,800MW, respectively.
This is part of a wider 20-year electricity strategy unveiled last year in partnership with Siemens Energy and GE Vernova. The programme aims to add 57GW of new generation capacity through a mix of gas-fired, thermal and renewable energy projects.
Electricity shortfall
The scale of the challenge means timely project execution will be critical. Iraq currently produces about 28GW of electricity, according to the Electricity Ministry, but demand during peak summer periods is estimated at more than 50GW. The shortfall continues to result in widespread outages and pressure on the national grid.
The fragility of the system was exposed again in March, when Iraq suffered nationwide electricity blackouts after a sudden drop in gas supplies to the Rumaila power plant in Basra. The disruption led to the loss of about 1,900MW of generation capacity and triggered a nationwide grid collapse.
The incident highlighted Iraq’s continued dependence on associated gas production from the oil sector. With regional geopolitical tensions affecting oil exports and production, gas availability for power generation has become increasingly vulnerable.
Solar plants
As part of a strategy to diversify energy sources, the country inaugurated the first phase of the 300MW Karbala solar IPP plant in September 2025, marking Iraq’s first utility-scale solar scheme connected to the national grid.
Developed by a consortium of Norway’s Scatec, Egypt’s Orascom Construction and Iraq’s Al-Bilal Group, the project forms part of the government’s target to add 10GW of solar energy by 2030.
These plans also include the 1GW solar IPP in Najaf, now under construction and scheduled for commissioning in 2028.
Looking further ahead, the Iraqi government announced in February that it has allocated more than 140 sites for new solar power plants, following a six-month identification process. The locations are distributed across several regions, including the outskirts of Baghdad and areas such as Nahrawan, Al-Nasr, Al-Salam, Al-Hamamiyat, Taji and Al-Husseiniya.
Meanwhile, regional interconnection projects are also becoming increasingly important. Iraq is progressing with plans to integrate into the GCC electricity grid through a new 400kV transmission link between Kuwait’s Al-Wafra station and Iraq’s Al-Faw station.
The first phase of the project will allow 500MW of electricity imports into Iraq, rising to 1,800MW over time. Iraq is targeting full integration of the GCC-Iraq grid by the end of 2026.
MEED’s June 2026 report on Iraq also includes:
> OVERVIEW: Iraq enters era of resilience, reform and rising risks
> OIL & GAS: Iraqi oil and gas sector in crisishttps://image.digitalinsightresearch.in/uploads/NewsArticle/16797622/main.gif