US urges Iraq to work with KRG to develop gas production
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ERBIL, Kurdistan Region - US President Donald Trump's administration has urged the Iraqi government to work with the Kurdistan Regional Government (KRG) to start gas production following major gas contracts between the Kurdish government and American firms, a state department spokesperson said on Thursday.
Two major energy contracts were signed in Washington between the Kurdistan Regional Government and US-based HKN Energy and WesternZagros on Tuesday. They were valued at a combined $110 billion over their lifespans. However, Baghdad has rejected these deals, deeming them illegal.
'We support these deals, and we have encouraged Baghdad and Erbil to work together to get gas production to commence as soon as possible,' US State Department Spokesperson Tammy Bruce told Rudaw during a press briefing.
She added that the 'massive' deals between the KRG and US firms 'will help Iraq harness its own domestic resources to become energy independent, which we've again talked about, it's really great.'
Iraq suffers from chronic electricity shortages, especially felt when summer temperatures reach scorching levels of over 50 degrees Celsius. The high temperatures subsequently lead citizens to consume very high amounts of power.
In March, the US rescinded a waiver that permitted Iraq to purchase electricity from Iran as part of President Trump's maximum pressure campaign against Iran, which also aims to drive Tehran's oil exports down to zero.
Iraq relies heavily on Iranian gas imports to operate its power plants. Baghdad now is seeking to export electricity from Turkey and Gulf countries. It already buys electricity from the Kurdistan Region.
Kurdistan Region Prime Minister, who arrived in Washington on Saturday, met with US Energy Secretary Chris Wright on Thursday. The two said the meeting was very good.
Barzani is expected to meet with US Secretary of State Marco Rubio on Friday.
Bruce confirmed the meeting to Rudaw and said the two will 'discuss expanding trade and investment between the United States and the Iraqi Kurdistan Region.'
She emphasized that Rubio has stated that Washington supports the 'Kurdish autonomy' and 'urged the Government of Iraq to respect this economic lifeline that is necessary to prosper and succeed.'
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