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Iraq urged to develop gas infrastructure to end power crisis
Iraq urged to develop gas infrastructure to end power crisis

Zawya

time08-05-2025

  • Business
  • Zawya

Iraq urged to develop gas infrastructure to end power crisis

Iraq is facing a growing electricity crisis as soaring summer temperatures coincide with the expiration of US sanctions waivers, cutting off critical gas imports from Iran, Iraq's Shafaq news agency said on Thursday. 'Iraq has lots of gas reserves, but most of it is associated with oil production, and their gas transport and processing infrastructure is underdeveloped,' it said, quoting Paul Sullivan, Professor of Energy Security at Johns Hopkins University. Sullivan urged domestic investment in the gas sector, stressing 'the solution for Iraq is to develop its internal resources and infrastructure for gas. But that will take some time.' Iraq currently imports around 50 million cubic feet of Iranian gas daily—roughly two-thirds of its power generation capacity—according to government spokesperson Basim al-Awadi. However, the expiration of US sanctions waivers on 7 March has severely disrupted those imports, leading to nationwide blackouts. Sullivan characterised the situation as 'extremely difficult,' warning that Iraq is trapped in a time-sensitive crisis. While some have suggested switching to floating LNG terminals, he noted, 'Even getting FLNG ships docked and ready to import will take time.' The professor also pointed out that Germany was able to adapt quickly after losing Russian supplies, but emphasised that Iraq faces a very different set of logistical and financial constraints Muhyiddin Qassar, a former economics professor at the US Northwestern University, said that reinstating the waiver remains politically uncertain. 'Trump could reverse course, but right now he's using energy policy as leverage in nuclear talks with Iran,' he observed. In a recent report, Iraq's Ministry of Electricity said that generation capacity is estimated at around 28,000 megawatts (MW)—far short of the estimated 50,000 MW needed to meet peak summer demand. The resulting shortfall is already causing grid instability and power outages. Iraq is now evaluating LNG imports from Qatar and Oman, and pipeline gas from Turkmenistan. However, Sullivan cautioned that gas from Turkmenistan would likely need to transit through Iran—a route now politically complicated. 'That doesn't seem feasible at the moment.' While the Iraqi government has expressed a long-term goal of gas self-sufficiency, Sullivan stressed the urgency of acting on multiple fronts. 'With serious investment, it's possible over the long term. But they need to move fast and pursue parallel strategies, including storage development and alternative generation sources,' he noted. (Writing by Nadim Kawach; Editing by Anoop Menon)

Crescent Petroleum eyes major gas investment in Diyala
Crescent Petroleum eyes major gas investment in Diyala

Shafaq News

time28-01-2025

  • Business
  • Shafaq News

Crescent Petroleum eyes major gas investment in Diyala

Shafaq News/ Diyala province could emerge as a key hub for Iraq's gas industry through strategic investments in its gas fields, Abdullah Al-Qadi, CEO of UAE-based Crescent Petroleum, stated on Tuesday. Speaking at the "Iraq Energy" conference, Al-Qadi highlighted challenges in fast-tracking gas production at the Al-Khashm Al-Ahmar field, citing bureaucratic delays within Iraqi state institutions. "We aimed for rapid development, similar to our success at the Kor Mor field in al-Sulaymaniyah, where the Kurdistan Regional Government (KRG) granted us the necessary authorities to achieve production within 15 months. However, in Diyala, administrative hurdles have slowed progress," he explained, confirming that despite these obstacles, the project remains on track for completion within two years. He also emphasized Diyala's potential to become a gas industry hub by linking its fields with nearby reserves such as Ajil and even those in al-Sulaymaniyah. In 2023, Iraq's Ministry of Oil activated three contracts with Crescent Petroleum to develop the Al-Khashm Al-Ahmar, Kallabat, and Khider Al Mai fields, as part of the fifth licensing round aimed at harnessing 400 million standard cubic feet of gas. The development of Iraq's gas sector holds transformative potential for the country's economy. Investing in domestic gas resources could lead to energy self-sufficiency and position Iraq as a natural gas exporter. Additionally, utilizing gas from fields like Khawr Al-Zubair, Kallabat, and Khider Al Mai could reduce reliance on oil and lower import costs, strengthening Iraq's energy security while fostering industrial growth in sectors such as petrochemicals and fertilizers. Furthermore, capturing and utilizing associated gas—often flared as waste—could generate billions in revenue, enhancing economic sustainability. According to the Al-Bayan Center for Studies and Planning, maximizing Iraq's gas potential would not only drive economic growth but also create substantial job opportunities, reinforcing the country's long-term energy strategy.

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