French oil major TotalEnergies has begun building a gas processing facility in Iraq, it said on Friday, the first portion of a massive multi-energy project aimed at reducing the country's import bill and attract foreign investment.

ArtawiGas25 will process 50 million cubic feet of gas per day from the Ratawi field, which is currently flared, or burned off. The gas will then supply local plants to power 200,000 households in the Basra region, the company said.

The facility represents a $250 million investment, part of a total $10 billion to be spent by Total over four years. It will create up to 160 direct and indirect jobs during the construction phase and 30 permanent positions once operational.

(Reporting by America Hernandez in Paris Editing by David Goodman )