Iraq Moves to Capture Flared Gas, Cut Iranian Imports

Iraq has signaled a strategic shift in its approach to natural gas, moving toward capturing rather than flaring the associated gas produced alongside its oil output. The country has long been one of the world's largest gas flarers, burning off vast volumes of associated gas at oilfields primarily in the south, representing both an environmental liability and a significant revenue loss. The shift positions Iraq to monetize a resource it has historically wasted, potentially reducing dependence on Iranian gas imports that currently supply a substantial share of its power generation needs. If Iraq can scale gas capture infrastructure, domestic supply could displace Iranian imports, with direct consequences for Baghdad's fiscal position and its geopolitical exposure to Tehran. Execution risk remains high: Iraq's upstream infrastructure investment has historically lagged ambition, and international partners would need to commit capital to processing and pipeline buildout. Progress on capture targets and the pace of foreign investment commitments are the key variables to watch.