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Ministry of Oil Clarifies LNG Floating Platform Project Amid Allegations

Baghdad: The Ministry of Oil issued a clarification regarding the floating platform project for importing liquefied natural gas (LNG).

According to National Iraqi News Agency, the Ministry emphasized Iraq's pressing need to secure electricity and operate power plants efficiently, necessitating the diversification of LNG import sources. This decision was made under the direct guidance of the Prime Minister, aiming to enhance power plant operations across the country.

The Ministry outlined that the Council of Ministers and the Ministerial Council for Energy have issued decisions to determine the implementation mechanisms, referencing Ministerial Council for Energy Decision No. (55) of 2025. In line with this decision, invitations were extended to six companies to submit their technical and commercial bids. Specialized teams and committees, including a technical committee from the Ministry of Oil, were established to review the submissions. Additionally, a Diwani Order Committee, comprising the Ministries of Oil, Electricity, and Transport, was formed to evaluate the technical committee's findings and make informed decisions.

The Ministry further mentioned parallel efforts by the South Gas Company and the Oil Projects Company in constructing a gas pipeline from Khor Al-Zubair to the Shatt al-Arab Regulator. This 40 km pipeline, with a diameter of 42 knots, was completed on schedule in June 2025 and is ready for gas reception. A second 45 km pipeline, from Mahmoudiya to the Bismayah Power Plant, was also completed, overcoming challenges such as the summer heat and logistical obstacles.

The Ministry highlighted that two companies were initially close in terms of technical and commercial proposals. However, one company submitted forged documents regarding the ownership of the floating platform, leading to its disqualification. Their revised offer, proposing a capacity of less than 500 megawatts and utilizing two separate platforms for storage and gasification, was deemed unacceptable by the Ministry of Electricity and the Iraqi Ports Company.

Currently, only two companies remain technically and commercially qualified, having submitted recent offers. The final decision is expected at the upcoming Diwani Order Committee meeting. The Ministry stressed that all processes were conducted legally and transparently, under the supervision of specialized ministerial committees, and disclaimed responsibility for any company's shortcomings. A complaint will be lodged against media outlets that have allegedly misrepresented the situation, potentially misleading the public regarding the government's achievements under the Prime Minister and the Ministry of Oil.