Iraq, comprising the world’s third-largest proven oil reserves, has long struggled with limited midstream infrastructure. But with soaring production and ambitious regional export ambitions, significant investment is now flowing into tank storage expansion and pipeline upgrades. This article explores the key midstream shifts that are reshaping Iraq’s energy landscape.
Keywords: Iraq tank storage, Iraq pipelines 2025, Iraq energy infrastructure, Iraq midstream investment, Iraqi oil storage trends.
Rapid growth in tank farms
According to industry data, Iraq’s midstream storage segment is experiencing “rapid growth” driven by major expansion across Fao, Zubair, Nassiriyah, and Bin Omar. Key facilities include:
These projects are part of a national push—via the National Investment Commission—to strategically build at least five waterway-adjacent tanks in provinces like Basra, Mosul, and Saladin.
Why it matters:
Private investors can capitalize on stable, contract-backed cash flows, while improving Iraq’s ability to manage price risk and regulatory compliance.
Modernizing main export arteries
Iraq’s network of over 71 pipelines—transporting crude, gas, and LPG—is the logistical backbone of the energy system.
Key developments:
Domestic pipeline evolution
To meet internal demand and industrial growth, Iraq is building inland pipelines, often tied to new storage terminals. Parallel projects include:
These modernizations support grid stability, gas-backed power generation, and energy security—adding dimensions beyond crude transport.
Grand Faw Port & Development Road
The $17 billion Grand Faw Port, due for Phase II completion by 2025 with 30 berths, is an anchor for Iraq’s Development Road connecting to Turkey and Europe. This corridor will:
This convergence of storage, pipeline, rail, and port infrastructure presents a system-level investment opportunity.
GGIP – Grid, Gas & Solar Pipeline
The TotalEnergies–led GGIP (Gas Growth Integrated Project) will combine power pipelines, gas collection systems, and solar arrays across Basra and Ratawi. Expected to launch from 2025–28, GGIP is a key example of the energy transition intersecting with midstream infrastructure.
Digital control and SCADA
Modern pipelines and tank terminals now deploy SCADA, real-time monitoring, drone surveillance, and leak detection systems. This digital layer improves:
Cybersecurity focus
Global learning from pipeline attacks like Colonial Pipeline has spurred investment in cybersecurity across Iraq’s network . As systems integrate IoT and OT, risk management becomes key, offering a specialized services niche.
Government-backed initiatives
Projects like GGIP and Development Road enjoy strong backing from the Iraq Development Fund (IDF), which has mobilized $7 billion+ in FDI for energy and sustainability projects.
Environmental safeguards
Tanks now include emission reduction systems (floating roofs, vapor recovery), solar-powered pumps, and dedicated emergency zones. These are critical for:
Regional cooperation
Bilateral agreements with Syria, Turkey, Jordan, Oman, and Qatar support the pipeline network imperatives, creating cross-border ecosystem resilience.
Projected midstream CAGR > 2.4% through 2030 .
Tank storage: ≥ 2 million barrels capacity added by 2027.
Pipelines: Key artery reactivations expected to raise export capability by 500k–1M bpd.
Port terminals: Enable throughputs of several million barrels per year from 2026.
Investor Value Highlights
Greenfield tank farms: Near pipeline junctions or port frontages with bonded/static capacities + solar backup + digital oversight.
Pipeline participation: Via PPPs and EPC contracts, especially across domestic-expatriate corridors.
Data operations: SCADA-as-a-Service and IoT monitoring systems.
ESG investor pitch: Highlight local jobs, environmental mitigation, and resilience uplift.
Mitigation strategies include robust stakeholder engagement, integrated project structures (tank + pipeline + port), and digital risk monitoring.
Iraq’s energy transformation is entering a pivotal midstream insurgence—fuelled by:
Investors now have a rare chance to enter through integrated, future-proofed projects with both economic upside and strategic depth.
