Iraq’s LPG Production Reaches 3 Million Tonnes Annually, Oil Ministry Official Says

INA

Izzat Saber, Undersecretary of the Ministry of Oil for Gas Affairs.

The Ministry of Oil confirmed on Wednesday that annual production of liquefied petroleum gas (LPG) has reached 3 million tonnes, contributing to increased revenues.

Izzat Saber Ismail, Undersecretary of the Ministry of Oil for Gas Affairs, told the Iraqi News Agency that the LPG production and export sector is experiencing continuous growth, in line with the Ministry’s strategy to maximise the use of petroleum products and boost non-traditional revenue streams.

He noted that current LPG production capacity stands at 3 million tonnes per year, explaining that the Basra Gas Company accounts for 2 million tonnes, around 1 million tonnes of which is exported, while the remainder is supplied to meet domestic demand.

Ismail added that plans for next year involving the North Gas Company and South Gas Company aim to increase Iraq’s total LPG output to more than 4 million tonnes annually. Under these plans, Basra Gas Company is expected to produce an average of 2.5 million tonnes, alongside a gradual expansion in exports. He further stated that the Ministry’s long-term vision targets total production of 7 million tonnes per year by 2030, with Basra Gas Company contributing up to 3 million tonnes. This, he said, would enhance Iraq’s position in regional markets and generate additional revenue for the state treasury.

He emphasised the importance of distinguishing between natural gas, which is used to fuel power stations, petrochemical facilities and cement plants, and liquefied petroleum gas (LPG), commonly known as cooking gas, which is used for household purposes and as vehicle fuel.

He concluded that the continued growth in LPG production and exports represents a promising sector for generating additional income and supporting revenue diversification, reflecting the success of efforts to develop downstream industries within the oil sector.


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