DUBAI, UAE - Iraq has reduced gas flaring by 70 percent as part of a sweeping effort to modernize its energy sector, Prime Minister Mohammed Shia’ al-Sudani announced Tuesday at the Iraq Energy Conference 2025 in Baghdad.

Speaking at the conference, themed “Together for a Promising Energy Future,” Sudani detailed the government’s vision for achieving energy sustainability and economic diversification. 

Iraq for years has been considered the second country in the world when it comes to flaring associated gas, coming only after Russia.

Sudani on Tuesday said that the country’s total flaring has been reduced by 70 percent, and aims put a complete end to the environmentally harmful practice.

The prime minister emphasized Iraq's progress toward self-sufficiency in fuel production, with plans to export gas oil and convert 40 percent of the country’s oil output into petrochemical industries by 2030.

Key to these efforts is the development of integrated energy projects, including the Artawi oil field in Basra Province. The project combines oil production with seawater desalination, solar energy generation, and natural gas utilization to maximize efficiency and minimize environmental impact.

The prime minister also highlighted advancements in electricity production. Iraq is adopting a new economic model for thermal power plants, which will add 15,000 megawatts of capacity. 

Further, the Ministry of Electricity will soon announce a package of major projects to boost power generation at gas-fired stations.

To reduce energy losses and harmful emissions, Iraq is modernizing its electricity transmission and distribution networks with smart technologies. “The electricity sector is a critical backbone of economic development and can become a primary gateway for growth,” Sudani said.

The government is expanding renewable energy infrastructure, with solar projects expected to generate 4,875 megawatts upon completion. A national initiative also supports household adoption of solar power systems through loans provided under the Central Bank’s 1 trillion dinar financing program.

Iraq is enhancing regional energy ties, with ongoing electricity interconnection projects linking its grid to Gulf countries, Turkey, and eventually the European Union. These efforts aim to diversify energy sources and cement Iraq’s position as a regional energy hub.

The government is also advancing the Development Road project, a strategic initiative to establish transport and energy corridors connecting Asia and Europe. 

The project includes pipelines for oil and gas, as well as communications infrastructure to attract global investment.

Sudani stressed the importance of partnerships with the private sector, describing them as pivotal for accelerating progress in addressing climate change, tackling water scarcity, and creating job opportunities. 

“One job in the private sector generates many more, driving sustainable growth,” he said.

The prime minister also underscored Iraq's global role as a stabilizing force in oil markets, leveraging a strong economy and extensive energy reforms to boost international cooperation.

“Iraq is transforming into a cornerstone of global energy stability and a regional hub for energy industries,” Sudani said.