Iraq’s Ministry of Electricity has signed an agreement to construct the 3 GW Al-Faw gas-fired CCGT power plant in Basra (Iraqi News Agency, 17/10/2025). The contract was concluded between the
Southern Power Production General Company
and
Advanced Technology Systems Company
, both Iraqi entities, with the project to be directly implemented by
U.S.-based General Electric (GE)
. The investment is set to span 25 years, according to the Minister of Electricity.
The project will operate under a
“Take and Pay” model
, whereby the government pays only for the electricity it receives. The combined-cycle power plant will feature
four gas turbines and two steam units
. The Minister emphasized the
strategic location
of Al-Faw—close to the Grand Faw Port and connected to the new
Wafra–Faw interconnection line with Kuwait
, positioning
Basra as a future regional energy hub
.
This announcement follows Iraq’s broader efforts to expand its power generation capacity, including a
recent deal with GE Vernova
to build
gas-fired CCGT plants
totalling
24 GW,
and a separate agreement with Siemens for an
additional 14 GW
(KEI, 09/10/2025).