The main source of Iraqi LPG is the oil-refineries; the other source is by winning of Natural Gas.

A Strategic Alliance Protocol was signed in April 2007, as part of a strategy to advance regional economic benefits through successful development of substantial gas resources. As part of the agreement, Dana Gas has been commissioned to develop process and transport natural gas from the Khor Mor Gas Field, and also to concurrently appraise the potential of the Chemchemal Gas Field, both major gas fields in Iraq.

For more info see: http://www.danagas.ae/