Cairo, September 13, 2025 – The International Finance Corporation (IFC), part of the World Bank, has signed a $500 million investment deal with Basrah Gas Company (BGC) in Iraq. The money will be used for gas projects and to build new facilities at the vital Umm Qasr port, which plays a key role in Iraq’s trade and energy exports.
This agreement marks a major step forward for Iraq’s energy development plans. For years, the country has struggled with gas flaring, where large amounts of natural gas produced during oil extraction are burned off instead of being captured and used. Not only does this waste valuable resources, but it also harms the environment and increases air pollution. With this new IFC-backed investment, Iraq is aiming to cut down on flaring, improve gas utilization, and create a more sustainable energy sector.
According to officials, the funding will go toward expanding associated gas projects, which capture and process natural gas released during oil production. In addition, part of the money will be used to modernize and expand facilities at Umm Qasr port, Iraq’s largest seaport and an important hub for both imports and exports. Strengthening this port will make it easier for Iraq to transport energy resources, boost trade, and connect more effectively with international markets.
The deal is also expected to support Iraq’s economic recovery by creating jobs, building stronger infrastructure, and attracting more global investment. Basrah Gas Company described the project as “one of its most significant” initiatives, with the potential to bring both economic and environmental benefits.
For Iraq, this partnership with IFC shows growing international confidence in its energy sector. It also highlights the country’s commitment to turning its natural resources into long-term growth while reducing its environmental footprint.
Why This Deal Matters
Iraq faces big challenges with its energy sector, especially with gas flaring – the burning of gas that comes out during oil production. This new project will help reduce waste, protect the environment, and improve energy use inside the country.
Basrah Gas said this will be one of its biggest projects yet, aimed at cutting flaring and boosting Iraq’s economy.
Building on Past Investments
This is not the first time IFC has invested in Basrah Gas. In 2021, IFC gave a $360 million loan to build a gas liquids plant. That project was finished earlier this year. The new $500 million deal shows continuing support for Iraq’s energy growth.
Benefits for Iraq
- More energy supply for homes and businesses
- Fewer emissions from flared gas
- New jobs and better infrastructure
- Stronger economy and export potential
Global Importance
The upgrade at Umm Qasr port will also help Iraq trade more easily with the world. With demand for natural gas rising globally, Iraq is aiming to become a stronger player in regional and international markets.
Frequently Asked Questions (FAQ)
Q1: What is the IFC’s $500 million deal with Basrah Gas about?
The International Finance Corporation (IFC) signed a $500 million investment deal with Iraq’s Basrah Gas Company (BGC). The money will be used to expand gas projects, cut gas flaring, and build new facilities at Umm Qasr port.
Q2: Why is this deal important for Iraq?
This investment will help Iraq by reducing wasted gas, increasing the energy supply, and protecting the environment. It will also create new jobs, support infrastructure growth, and make the country’s economy stronger.
Q3: What is gas flaring?
Gas flaring happens when natural gas that comes out during oil production is burned instead of used. This wastes valuable energy and adds pollution to the air. The new project aims to capture and use the gas, turning waste into useful energy.
Q4: What role does Umm Qasr port play in this deal?
Umm Qasr port is Iraq’s largest seaport and a key gateway for trade. By upgrading it, Iraq will be able to export more energy resources, improve shipping, and connect better with global markets.
Q5: Has IFC invested in Basrah Gas before?
Yes. In 2021, IFC provided a $360 million loan to build a gas liquids plant. That project was completed in 2025, showing successful cooperation and progress in Iraq’s energy sector.
Q6: How will this investment benefit ordinary Iraqis?
The deal is expected to bring more reliable electricity, new job opportunities, and cleaner air by reducing harmful gas flaring. This means better living conditions and a stronger future for local communities.
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