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- Wednesday,10-16-2024,PM 9:30
- Karar Al-Asadi
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For more than two decades, Iraq has been facing a double problem regarding gas. It imports large quantities of it worth billions of dollars annually to operate power plants, while in return it burns daily what it can to secure its needs and avoid spending these billions.
However, after the Minister of Electricity, Ziad Ali Fadhil, acknowledged the shortage of supplies of imported Iranian gas, due to the events in the region and the impossibility of operating the main power stations in Baghdad on local national gas at the present time, the Parliamentary Oil, Gas and Natural Resources Committee revealed today, Wednesday, that Iraq is heading towards contracting with Kazakhstan to supply it with gas.
Iraq relies on gas imported from Iran to operate most of its power plants. According to Iranian Deputy Oil Minister for Gas Affairs Majid Chekani, Iran has exported about 52 billion cubic meters of gas to Iraq, worth $15 billion, since 2017.
The spokesman for the Oil, Gas and Natural Resources Committee, Ali Shaddad, said in a press statement that “the Minister of Electricity, Ziad Ali Fadhel, attended with the advanced cadres to host the committee based on previous recommendations,” noting that “the issue of the scarcity of kerosene and gas oil was reviewed due to the depletion of the strategic reserves of the Ministry of Oil and the Ministry of Electricity.”
He explained that “most power stations operate on kerosene, and this is based on the fluctuation in the import of gas from the Iranian side,” noting that “there were crises during the peak months, accompanied by the Iranian side’s failure to commit to exporting gas to Iraq to operate the power stations, which led to turning to alternative fuel, and this had a negative impact on the citizens.”
He added, "The committee asked the Ministry of Electricity to provide us with the 2025 plan," noting that "the Ministry of Electricity is going to contract with Kazakhstan to supply Iraq with gas in the future in quantities reaching 20 million cubic meters."
Earlier on Wednesday, the Parliamentary Oil and Gas Committee hosted Minister of Electricity Ziad Ali Fadhel, senior staff from the ministry, and the Director of Oil Products Distribution at the Ministry of Oil to discuss fuel supplies for the Ministry of Electricity.
During his hosting, the Minister of Electricity confirmed that the power stations operate on different types of fuel, as some stations depend on imported Iranian gas and kerosene, such as the Bismayah, Al-Sadr and Al-Mansouriyah stations.
He explained that there are stations that operate on different types of fuel, including imported and local gas and kerosene, indicating that “the main electrical units in Baghdad, namely the Bismayah, Sadr and Mansouriya stations, depend entirely on imported Iranian gas, while some generations use kerosene to operate them, especially the Bismayah station, while he confirmed that “it is impossible to operate these stations on local national gas at the present time.”
Iraq suffers from a chronic gas shortage despite being one of the most prominent oil countries in the Middle East. Under an agreement with Iran, it imports about 50 million cubic meters of gas daily through a group of pipelines in the east and south of the country, which were built to supply Iraqi gas-powered power stations.
Iraq had signed four contracts with the French energy company TotalEnergies last July, worth $27 billion, in an effort to boost oil production and invest in associated gas, which will provide the country with about 300 million standard cubic feet of gas, in addition to producing about a thousand megawatts of electricity through renewable solar energy.
It is noteworthy that the US Energy Information Administration stated that Iraq has flared 629 billion cubic feet of natural gas, due to the inadequacy of pipelines and infrastructure so far, indicating that this amount of gas flared is sufficient to supply 3 million homes with energy.
World Bank data indicates that the lack of gas collection equipment in Iraqi oil fields leads to the burning of 18 billion cubic meters of associated gas annually. According to international estimates, this burning costs Iraq $2.5 billion annually, or the equivalent of 1.55 billion cubic meters of gas per day, which is 10 times what Iraq imports from Iran.
Oil and energy expert Hamza Al-Jawahiri confirmed in a previous press statement that “Russia purchased 80 percent of Turkmenistan’s gas, and only 20 percent remains to meet their local needs. This is another strange matter. How will they supply Iraq with gas?” He indicated that “the cost of transporting the gas will be very high, especially since it will pass through a pipeline that will be extended specifically for this gas. This cost raises the question of why Iraq is not investing in its own gas instead of this cost.”
In August 2023, the Ministry of Oil announced an initial agreement to import gas from Turkmenistan to meet part of the needs of power plants, according to a memorandum of cooperation prepared for this purpose.
Associated and natural gas fields are spread across most of Iraq’s oil provinces, with 70 percent in the Basra fields (Majnoon, Halfaya and Rumaila), 10 percent in the Kirkuk fields, and 20 percent in the northern and western regions of the country.
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