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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


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I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Electricity and gas in Iraq...an Iranian specter and an unsuccessful “primitive” policy

    Rocky
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    Electricity and gas in Iraq...an Iranian specter and an unsuccessful “primitive” policy Empty Electricity and gas in Iraq...an Iranian specter and an unsuccessful “primitive” policy

    Post by Rocky Sun 03 Mar 2024, 6:48 am

    Electricity and gas in Iraq...an Iranian specter and an unsuccessful “primitive” policy



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    2024-03-03 01:19
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    Shafaq News/ Iraq is the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, but it imports electricity and gas from Iran, amounting to between a third and 40% of its energy needs, due to the lack of facilities necessary to process it, and when any stoppage in export occurs, it affects... Directly supplying electrical power to many Iraqi governorates, which reflects the “primitiveness” of the gas policy, according to specialists, who confirmed that the solution is to invest in national gas to achieve self-sufficiency and get rid of the problems of imported gas.
    The latest Iranian gas crisis was what the Iraqi Ministry of Electricity announced, on February 28, that the Iranian gas supplied “completely” stopped, which led to a limitation of the loads of the system’s generating units and a loss of approximately (4) thousand megawatts.
    The Ministry of Electricity said in a statement received by Shafaq News Agency, “The scarcity of supplied gas has stopped again (completely) in the Middle Euphrates and Baghdad governorates, which led to a limitation of the electrical system’s loads and a decline in its production, which caused the system to lose approximately 4,000 megawatts.”
    The ministry's statement indicated, "A complete cessation of the electricity transmission lines between Iraq and the Islamic Republic of Iran, due to the cold wave, according to the Iranian Ministry of Electricity."  
    She explained that this came “at a time when the Ministry of Electricity was preparing early and was about to complete its comprehensive maintenance of the production stations and their generating units to be ready for peak loads next summer.”
    The Iraqi Electricity Corporation confirmed that it is "currently coordinating closely with the Ministry of Oil through an ongoing operations room to compensate it with nationally produced fuel and gas, until the supplied gas is pumped again in the required quantities."
    She pointed out that "part of the production stations operates on national gas, and another part on national fuel, while another part of our production stations operates on gas supplied due to insufficient national gas, which the government is working hard and with intensive steps to exploit and rely on independently."
    Official sources reported to Shafaq News Agency that electrical power supply had declined in the capital, Baghdad, and a number of governorates due to the cessation of “Iranian gas.”
    Last Tuesday, lines imported from Iran went out of service and processing hours decreased in Diyala Governorate.
    According to sources, Shafaq News Agency, the Iranian electricity lines Mirsad and Sarpil Zahab, which supply most areas of Diyala Governorate with electricity, stopped working and went out of service from the source.
    It is worth noting that the Ministry of Electricity’s expenditures from the year 2003 until the year 2021 exceeded $80 billion, according to what experts stated at the time, in addition to the ministry’s allocations in the 2022 and 2023 budgets, which raises the number to about $100 billion over 20 years.
    When will the problems with imported gas end?
    Member of the Parliamentary Oil, Gas and Natural Resources Committee, Representative Bassem Al-Gharibawi, says, “The various problems of imported gas, including non-payment of funds or due to the cold weather and the fact that they need it, can be eliminated by investing in national gas and achieving self-sufficiency from it.”
    Speaking to Shafaq News Agency, Al-Gharibawi holds, “Previous governments are responsible for what this sector has reached, and the current government also bears responsibility for accelerating the investment of currently existing gas.”
    He adds, "There are contracts for the sixth rounds, and it is hoped that companies will come forward in the fourth month to be referred to them. There are also solutions proposed, but there is no rush to implement them, as the fields are not being invested, and the gas is burning and is not being invested in a correct manner." 
    He stresses that the current government has steps in this aspect, but those steps must have an impact and effectiveness on the ground. It is true that investing in oil fields requires time, but the referral and investment procedures must be quick.
    Al-Gharibawi continues, “There is still talk about the fifth round, the fifth supplement, and the sixth round, and they have not been referred to companies yet, but rather are in the process of procedures and announcements, so discreet companies should be chosen and referred to, and then take their sufficient time.” 
    A member of the Oil and Gas Committee points out that “the committee has formed subcommittees, including a committee to follow up on the gas file alone, and its work is continuing, and during the coming period it will submit a report that includes proposals and recommendations, and work will be done to activate the outcomes of this report.”
    It is noteworthy that the Iraqi Foreign Minister, Fuad Hussein, confirmed yesterday, Saturday, that his country’s government intends to expand its production of natural gas to reach the export stage, during his hosting of a dialogue session entitled “International Trade: Communication and Interdependence” within the work of the Third Antalya Diplomatic Forum.
    Sixth licensing round

    On June 18, 2023, Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdul-Ghani, announced the launch of the sixth licensing round in 11 promising gas exploration blocks, according to a statement by the Iraqi Ministry of Oil received by Shafaq News Agency.
    Abdul-Ghani said that his ministry is keen on optimal investment of hydrocarbon wealth in Iraq, in line with the government program and the Prime Minister’s directives to increase reserves through oil and gas exploration, and to sustain and increase the production of crude oil and free gas.
    The step also comes within the Ministry's keenness to treat the gas associated with oil operations, and transform it into wealth and productive and useful energy, to cover local needs, especially for power generation plants, the petrochemical industry, fertilizers, and others.
    Iraq is preparing to increase its production of hydrocarbons, by offering the sixth licensing round for oil and gas exploration, as it aims to export its production to global markets, to advance the country’s economy, and provide job opportunities for its people.
    Abdul-Ghani added that his ministry has completed its preparations to prepare for the launch of the sixth licensing round for promising gas exploration blocks, which number 11 blocks.
    The Minister of Oil called on specialized international companies wishing to participate in oil and gas exploration, development and production activities to apply in this round, to compete and obtain one or more opportunities to explore and develop the aforementioned projects, by submitting an official application to the Ministry.
    Invasion policy 'primitive'
    For his part, the international Iraqi expert in the oil industries, Dr. Salah Al-Musawi, believes that “the Iraqi gas policy is primitive and unsuccessful. A year ago, Iraq opened a port in the Gulf to export gas abroad, at a time when it is importing it. This is one of the indications that the policy Gas is wrong, as it is not reasonable to export gas at a cheap price and import it at a high price.”
    Al-Musawi added to Shafaq News Agency, “The Iraqi Prime Minister always welcomes German investments in the field of gas, but Article 111 of the Constitution does not allow the entry of any local or foreign company with an investment contract for oil and gas fields, which shows a lack of knowledge of how to deal with gas.”
    Regarding the possible solutions, the expert points out that “the solutions are many, including the Iraqi state bringing in foreign companies to develop the work of gas extraction and its timing, and it is up to the Iraqi government only without a partner, neither internal nor external, and not as happened with Shell in 2009 in Basra, which was a partner.” With the government."
    He continues, “Gas turbines for generating electrical energy do not only operate on gas, but also on gas and other liquid petroleum derivatives. In addition, the gas that burns can be stopped quickly and completely using modern methods, processors, and technology, as many uses of gas can be compensated for.” About naphtha.
    He explains, “Petrochemicals are not necessarily made with gas. Rather, there are many alternatives to gas, including naphtha produced by factories. Iraq also contains huge numbers of gas fields, which requires conducting gas exploration work and investing it governmentally, and not as happened with Shell in South, in which case there will be a huge amount of gas.” 
    Iraq continues to burn some of the extracted gas with crude oil in the fields due to the lack of facilities necessary to process it and convert it into fuel for local consumption or export, according to a previous report by Reuters.
    Iraq is a country rich in oil resources, but its infrastructure is dilapidated as a result of decades of wars and chronic corruption. Iraq is witnessing frequent power outages due to this deteriorating infrastructure, according to Agence France-Presse.
    Gas supply from Turkmenistan
    On February 17, the Deputy Chairman of the Parliamentary Electricity and Energy Committee, Hassan Al-Asadi, revealed an “exception” to the agreement to supply gas to Iraq from Turkmenistan.
    Al-Asadi said in a previous statement to Shafaq News Agency, “The gas agreement between Iraq and Turkmenistan, which was signed at the end of last year, contains an exception that allows the Iraqi government to sign a contract with the Iranian side,” explaining that “according to the agreement, Iraq will buy gas from Turkmenistan, and the latter in turn sends the gas.” To Iran to benefit from it in the regions of northern Iran, and Iraq imports gas from southern Iran.”
    He added, "The agreement will serve Iraq and solve the problem of sending money for gas imported from Iran as a result of the American sanctions imposed on the Islamic Republic."
    He continued, "The problem of imported gas still exists, and will be addressed by completing the agreement with Turkmenistan and importing gas to meet part of the needs of electric power plants."
    On October 6, 2023, the Iraqi Minister of Electricity, Ziad Ali Fadel, signed a memorandum of understanding with the Turkmen Minister of State for Gas Affairs, to supply Turkmen gas to Iraq.
    Iraq imports electricity and gas from Iran, amounting to between a third and 40% of its energy needs, which is extremely important, especially in the summer months when temperatures reach 50 degrees Celsius and energy consumption reaches its peak.
    Iraq is facing difficulty in paying for these imports. Due to US sanctions that only allow Iran to obtain funds to purchase non-sanctioned goods; Such as: food and medicine.
    Kurdistan Region production
    In turn, the academic and economic expert, Dr. Khaled Haider, says, “Cutting off Iranian gas supplies to Iraq is not a new issue, and the Iranian government attributes it to Iraq’s failure to pay its financial dues, and it is an issue related to the financial blockade imposed on the Iranian economy.”
    To solve this problem, Haider added to Shafaq News Agency, “Last year there was an agreement excluding Iraq for a period of 120 days, and there was also a payment for the Iraqi government’s costs of importing gas from black oil, which are measures to ensure that gas supplies reach Iraq on a continuous basis.” "And natural."
    As for the dependence on gas produced in the Kurdistan Region, he explains, “Regional officials confirm that there is a tireless movement towards diversifying sources of income within the region’s economy, including supporting natural gas and expanding production. Therefore, it is expected that the Iraqi economy will depend somewhat on the region in addition to Import from Turkmenistan. 
    On October 10, 2023, the Undersecretary of the Ministry of Natural Resources in the Kurdistan Regional Government, Ahmed Al-Mufti, announced an increase in gas production during the past three years by 40%, pointing out that 50% of natural gas in Iraq is produced in the region.
    The Undersecretary of the Ministry said during his participation in the “Miri” Forum that the region has great potential to increase natural gas production, as it can, within a short period, produce a total of 60% of the natural gas production throughout Iraq, indicating that the Ministry currently produces a percentage of 50% of total natural gas production in Iraq.
    The Mufti pointed out that the region was able, during the past three years, to increase its production of natural gas by 40%, indicating that the demand for electricity has increased for this reason and that compared to other regions in Iraq, electricity production is in a better position.
    The Mufti touched on the possibility of developing gas fields and increasing investment, which could lead to the production of 5 million cubic feet of gas.
    It is noteworthy that last February, the Iraqi Prime Minister, Muhammad Shiaa Al-Sudani, confirmed in statements that Iraq “will reach the stage of self-sufficiency in gas within three years,” stressing that investment in gas associated with oil and natural gas “stems from his conviction” to achieve economic reforms. .
    Iraq is among the nine countries responsible for the majority of gas flaring operations, which account for about half of global oil production. World Bank data indicate that Iraq is the second country in the world that uses this practice the most, after Russia and before Iran and the United States. In 2020, the volume of gas flared in Iraq reached 17.374 million cubic metres.
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