The Iraqi government has approved granting the first license for a blue ammonia production plant in the Basra Governorate.

The National Investment Commission (NIC) is preparing to complete the requirements for granting an investment license after obtaining the Oil Ministry's approval on the gas supply necessary to operate the project, NIC spokesperson Hanan Jassim told Iraqi News Agency.

NIC is a one-stop shop that facilitates the investment license process for investors.

Jassim stated that the Arab region is witnessing intense competition in producing low-carbon ammonia, which aligns with global efforts to reduce harmful emissions.

The cost of the project and construction timelines are yet to be released.

Earlier this month, NIC Chairman Haidar Makki said that Iraq was planning to launch a blue ammonia project as part of a strategy to diversify its oil-dependent economy.

The UAE, Oman and Saudi Arabia have announced or commenced construction of blue ammonia projects this year.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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