Shafaq News/ Iraq is in advanced negotiations to finalize a liquefied natural gas (LNG) deal with Algeria, sources familiar with the talks said on Tuesday.

The sources, cited by the energy platform Taqa, said the agreement is expected to be announced within two months, with exports set to begin once Iraq completes its LNG import infrastructure at Khor Al-Zubair port in Basra. Plans include securing a floating storage and regasification unit (FSRU) and linking it to a 40-kilometer pipeline connecting to the national grid near Shatt al-Basra.

"Negotiations focus on a medium-term contract with an estimated supply of one million tons per year, though the final volume has yet to be determined," they added.

Depending on infrastructure readiness, the agreement could reportedly help stabilize Iraq’s electricity sector by summer 2025 or early winter.

On March 9, 2025, the US revoked its sanctions waiver allowing gas purchases from Iran, leading Iraq to search for alternatives.

Deputy Oil Minister for Gas Affairs Izzat Saber had earlier confirmed that Iraq is exploring gas imports from Qatar and Algeria, while working to eliminate associated gas flaring by 2030.