ERBIL, Kurdistan Region of Iraq – Iraq's liquified petroleum gas (LPG) sector is witnessing "steady growth," with production expected to reach four million tons annually by 2026, the oil ministry said on Wednesday.

Izzat Sabir, the oil ministry’s undersecretary for gas affairs, said that current LPG production “has reached three million tons annually, with the Basra Gas Company contributing up to two million tons,” adding that “approximately one million tons of this is allocated for export, while the remaining quantity is directed to cover domestic consumption.”

Iraqi Prime Minister Mohammed Shia’ al-Sudani announced in November that Baghdad had reached self-sufficiency in the production of oil derivatives, directing the oil ministry to cease their imports. 

Sabir said that the ministry plans “to raise total [LPG] production in Iraq to more than four million tons annually,” of which the Basra Gas Company is set to produce 2.5 million tons.

Baghdad plans to produce seven million tons of LPG annually by 2030, according to Sabir. 

Iraq currently exports 4,000 tons of LPG to international markets daily, according to a March report by state media, adding up to nearly 1.5 million tons annually, with plans to increase the figure as more projects expand and come online. 

In July 2023, Iraq inked a $27 billion mega contract with France’s TotalEnergies to develop the oil and gas sector over 25 years.