Iraq ramps up gas projects in Diyala
The Iraqi Oil Ministry has reached an agreement with a Chinese energy firm to accelerate the development of the Al-Mansouriya gas field in Diyala province as part of efforts to reduce reliance on imported fuel, a member of Iraq's Parliamentary Finance Committee has revealed.
Mudar al-Karawi told Shafaq News Agency that the ministry has signed a revised deal with China's Jereh Group and state-owned PetroIraq to shorten the project timeline from 42 months to just 20 months.
'The first phase will produce 100 million standard cubic feet of gas per day (Mscfd), gradually increasing to 300 Mscfd,' al-Karawi said at the weekend.
Located in eastern Iraq near the Iranian border, the Al-Mansouriya gas field is expected to play a vital role in fueling domestic power stations and trimming costly natural gas imports. Iraq currently imports gas from Iran to run much of its electricity sector.
'The locally produced gas will help reduce dependence on imported supplies and save Iraq millions of dollars annually,' al-Karawi said.
The development is part of a wider national strategy announced by Oil Minister Hayan Abdul-Ghani last October. The minister unveiled multiple gas and oil deals, including complementary licensing rounds, expected to boost production by over 850 Mscfd and 750,000 barrels of oil per day.
(Writing by Nadim Kawach; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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