ERBIL, Kurdistan Region of Iraq - The German Siemens Energy on Monday announced that they are in talks with the Iraqi government to invest in the Iraqi gas sector, especially in fields south of the country.

“The company is collaborating with the Iraqi government to invest in associated gas,” CEO of Siemens Muhanad al-Safar told Iraqi state media.

Safar added that the investment is “not only for environmental purposes but also to reduce significant government expenses, in addition to ensuring energy security, which is a crucial aspect of the energy sector within Iraq.”

For years, Baghdad has been reliant on importing gas from neighboring Iran to fuel the country’s electricity generation, and during excessively hot summers, the country experiences blackouts as Iran at times reduces gas exports claiming they need it for local use.

Iraq, despite having the world’s third largest proven oil reserves, has for years struggled to establish a natural gas industry of its own.

The country is considered among the top countries contributing to global gas flaring, a method that not only wastes the country’s ability to produce its own gas and fuel its own electricity, but also negatively impacts the climate.

“We are currently in discussions with the Ministries of Electricity and Oil to commence this project in the near future in southern Iraq,” Safar said.

Addressing the issue of flaring, Iraqi Prime Minister Mohammed Shia al-Sudani earlier this month said that the country intends to end flaring “within three to five years”.

“Within two months, we will officially announce self-sufficiency in oil derivatives and stop imports, which will save $3.2 billion,” Sudani said.

The country in February announced the re-opening of the North Refinery in the city of Baiji. The refinery which was once the country’s largest refinery will aid the government’s attempts to reduce imports of fuel from neighboring countries.