China boosts Iraq's oil and gas sector

China continues its global expansion based on business deals and agreements that, for some time now, have made it one of the world's great powers and the future of the world economy. Several companies from the Asian giant are investing in countries where they are opening business and producing an increase in their economic expectations. One of these destinations is Iraq, which China considers its best ally for investment in the Middle East.

Iraq and its position in the oil market represent a major investment by Beijing in the field of energy; three years ago the country joined the Silk Road and investments have not stopped.  

One of these Chinese companies is China Engineering Company (CIMC), which recently signed an agreement with Baghdad for the creation and installation of a natural gas processing plant. This is a $412 million contract to develop the project with Kuwait Energy and its subsidiary in Iraq.

The plant will be built in the province of Diyala, one of the areas of the Iraqi country where the largest gas reserves have been found. It is Iraq's second natural gas field after Akkas in Anbar province. It is expected to produce 300 million cubic feet of gas per day. 

China's interest in Iraq's gas is growing by the day. This announcement has approximately 132 trillion cubic feet of this material, so that investments in the Iraqi national market are more and more frequent and thus the Asian giant achieves a successful expansion to achieve its objectives and become more powerful in the world economy.

Iraq, moreover, is in one of its worst economic moments following the US withdrawal from the country and the country's corruption and unemployment. Despite this, China is contributing with these treaties to help the country find the stability it needs to improve its situation. Iraq, for its part, is looking for oil and gas investors in order to resolve the conflict and establish itself in the global energy market. 

And, like other countries, Iraq is looking to China with high expectations. Beijing is offering a range of resources and infrastructure projects that are tempting many international companies to sign contracts with Chinese firms. Moreover, this is pushing them further and further away from Europe and the West, where they do not offer the same opportunities. Thus, China is taking advantage of the decline of Western brands to rise to become the world's leading power.

Following Iraq's joining the Silk Road, with which China aims to revive centuries-old trade along the region, the two countries have succeeded in forging extensive partnership agreements, especially in the areas of construction and energy. Economic experts claim that China would have invested more than $20 billion in the country since the end of 2019. 

The oil sector has experienced great growth thanks to the participation of Chinese companies since 2003. They have significantly facilitated the process of finding and treating oil. In the field of gas, China has created large infrastructures for gas production. In addition, around 800,000 barrels of crude oil a day are imported from Iraq.

Thanks to China, among other nations, investments in Middle Eastern countries have grown considerably, increasing by more than 360 per cent last year alone. Beijing is also aiming for full expansion into Africa and other parts of the Middle East, and Chinese President Xi Jinping is working to create major development and investment projects across Asia and the African continent to strengthen China's influence in the world.