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Iraq Announces New Investment in Nasiriyah, Gharraf Gas Fields

Oil field in Iraq (Reuters)
Oil field in Iraq (Reuters)
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Iraq Announces New Investment in Nasiriyah, Gharraf Gas Fields

Oil field in Iraq (Reuters)
Oil field in Iraq (Reuters)

The Iraqi Oil Ministry announced that it would launch a gas investment project in the Nasiriyah and al-Gharraf fields with the US company Rico Hughes in Dhi Qar in southern Iraq.

The Oil Ministry stated that the project has a capacity of 200 million standard cubic feet per day, explaining that this project is one of Iraq's most significant strategic projects in the gas investment sector associated with crude oil.

Over the past months, Iraq has embarked on implementing giant gas investment projects with Chinese companies and France's Total to achieve record levels of gas production to meet the requirements of operating power plants.

Iraq aspires to launch new projects for gas investment in the Akkas field in the al-Anbar governorate and Mansouriya in the Diyala governorate.

Gas prices rose recently due to seasonal and circumstantial factors, in addition to an increase in oil prices. However, the prices fell on Friday as energy companies in the US Gulf of Mexico region resumed production after two successive hurricanes in the area halted production.

Brent crude futures fell 33 cents to settle at $75.34 a barrel. US West Texas Intermediate crude futures fell 64 cents to settle at $71.97 a barrel.

Over the week, Brent increased 3.3 percent, and US crude rose 3.2 percent, supported by tight supplies due to the hurricane outages.

The decline on Friday came after five consecutive sessions of rises for Brent crude.

On Wednesday, Brent hit its highest level since late July, and US crude hit its highest level since early August.

Gulf crude oil exports are flowing again after hurricanes Nicholas and Ida took out 26 million barrels of offshore production.

Reuters reported on Thursday that the resumption of activities continued with the suspension of about 28 percent of US Gulf of Mexico crude output.

Last week, US energy firms added oil and natural gas rigs for the second week in a row, although the number of offshore units in the Gulf of Mexico remained unchanged after hurricane Ida hit the coast more than two weeks ago.

Energy services firm Baker Hughes said 14 offshore rigs in the Gulf of Mexico had closed two weeks ago due to the continuing shutdown caused by Ida.

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Egypt Seeks Up to 60 LNG Shipments

A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
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Egypt Seeks Up to 60 LNG Shipments

A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
A general view of the Nile River from the Egyptian capital, Cairo (Reuters).

Egypt is in advanced talks with global energy and trading firms to secure between 40 and 60 shipments of liquefied natural gas (LNG), aiming to meet urgent energy needs before summer demand peaks, according to sources familiar with the matter cited by Reuters.
Cairo is negotiating with companies including Saudi Aramco, Trafigura, and Vitol for LNG supply deals extending through 2028, signaling a strategic shift from exporter to long-term importer amid declining domestic production, Asharq Bloomberg reported.
Sources say the Egyptian Natural Gas Holding Company (EGAS) has received 14 bids for supply contracts ranging from 18 months to three years. The rising demand this year could push Egypt’s monthly LNG import bill to nearly $3 billion starting in July, up from approximately $2 billion last year.
This move reflects Egypt’s effort to lock in long-term contracts to reduce exposure to volatile spot market prices. It also underscores the country’s deepening energy challenges: a sharp drop in gas production, increasing population, and soaring summer temperatures are straining domestic supply and forcing reliance on global markets.
Contract awards are expected next week. Plans call for 110 LNG shipments in the second half of 2025, 254 in 2026, and 130 in the first half of 2027.
One source said bids price LNG at 80 to 95 cents per million British thermal units (MMBtu) above the European benchmark, with payment deferrals of up to 180 days. European gas futures currently trade at about $12 per MMBtu, though LNG cargoes typically sell at a discount.
Egypt is also expanding infrastructure, including the addition of floating storage and regasification units, and is negotiating long-term supply deals with Qatar.
A recent Goldman Sachs report estimated Egypt’s 2024 energy deficit at over $11.3 billion, doubling the current account shortfall to 6.2% of GDP, compared to 3.2% the previous year.
President Abdel Fattah al-Sisi has directed the government to preempt power outages this summer, according to a presidential statement this week.
A government source told Reuters Egypt is also considering importing at least 1 million tons of fuel oil, though LNG remains the preferred option due to its more flexible financing.
With gas output in February hitting its lowest level in nine years, Egypt imported 1.84 million tons of LNG in early 2025—roughly 75% of total 2024 imports, according to S&P Global Commodity Insights.