Kurdistan Region gas a 'big opportunity' for Iraq to cut dependency on Iran: analyst
ERBIL, Kurdistan Region — Iraq's government has a "big opportunity" to benefit from Kurdistan Region gas reserves and reduce its need to import fuel from US sanction-hit neighbour Iran, an energy analyst told Rudaw on Saturday.
“There is a big opportunity [for Baghdad] also in the Kurdistan Region to develop the gas fields there...that will help Iraq to become more energy independent,” said Harry Istepanian, senior fellow at the Iraq Energy Institute.
Development of Kurdistan Region gas fields may take up to five years, if Baghdad agrees to fund it.
The US re-imposed economic sanctions on Iran after withdrawing from the 2015 nuclear deal. The sanctions seek to prevent the international community from doing business with Iran, but Washington has made Iraq an exception, granting the country and its frail energy infrastructrure a waiver, extended several times, to buy gas from its eastern neighbour.
The latest waiver renewal was granted in May, and is set to expire in late September. Istepanian said it is likely the US will extend the waiver "for another three months."
Kurdistan Region currently produces some 400 million cubic feet of gas per day from its Khor Mor field. All the gas produced is used for Kurdistan Region power plants, but there are a number of other fields currently under development.
The main operator of Khor Mor is Dana Gas. Its CEO told Rudaw in September 2019 that they could double production at Khor Mor and export its gas to either Iraq or Turkey.
Though the Kurdistan Region is yet to be able to supply its own residents with 24-7 national grid electricity, Prime Minister of the Kurdistan Region Masrour Barzani told Iraqi and Arab media on Wednesday that his government can provide electricity to nearby parts of Iraq, including war-torn Mosul.
“The Kurdistan Region has taken good steps regarding the production of energy. Currently, its electricity production capability is 6,500-7,000 megawatts, but we can only operate 3,500 of it because we do not have enough fuel to operate the fields,” he said.
“If we and Baghdad can benefit from this capability of the Region – when the fuel is provided by Iraqi government for these power stations, we can not only produce 24-hour electricity – we produce 21 hours now – but also produce electricity for other areas in Iraq as well,” Barzani added.
Iraq, a country where summer temperatures reach 50 degrees Celsius, has long suffered from a chronic shortage of electricity. The shortages have in past years been a rallying call for protests, particularly in Iraq's southern provinces.
Iraq imports 1200-1500 megawatts of electricity a day from Iran, a dependency too heavy for the country to not need the waivers.
KRG electricity minister Kamal Mohammed told Rudaw on Wednesday that they would begin selling electricity to Iraq on Friday.
“The Kurdistan Region will sell more than 500 megawatts of electricity to Iraq, starting from August 28. This electricity will be produced in stations which we have not used in the past [for ourselves]. Our investing electricity company will benefit from it and a large amount of money will come to the Kurdistan Region in this way.”
“There is a big opportunity [for Baghdad] also in the Kurdistan Region to develop the gas fields there...that will help Iraq to become more energy independent,” said Harry Istepanian, senior fellow at the Iraq Energy Institute.
Development of Kurdistan Region gas fields may take up to five years, if Baghdad agrees to fund it.
The US re-imposed economic sanctions on Iran after withdrawing from the 2015 nuclear deal. The sanctions seek to prevent the international community from doing business with Iran, but Washington has made Iraq an exception, granting the country and its frail energy infrastructrure a waiver, extended several times, to buy gas from its eastern neighbour.
The latest waiver renewal was granted in May, and is set to expire in late September. Istepanian said it is likely the US will extend the waiver "for another three months."
Kurdistan Region currently produces some 400 million cubic feet of gas per day from its Khor Mor field. All the gas produced is used for Kurdistan Region power plants, but there are a number of other fields currently under development.
The main operator of Khor Mor is Dana Gas. Its CEO told Rudaw in September 2019 that they could double production at Khor Mor and export its gas to either Iraq or Turkey.
Though the Kurdistan Region is yet to be able to supply its own residents with 24-7 national grid electricity, Prime Minister of the Kurdistan Region Masrour Barzani told Iraqi and Arab media on Wednesday that his government can provide electricity to nearby parts of Iraq, including war-torn Mosul.
“The Kurdistan Region has taken good steps regarding the production of energy. Currently, its electricity production capability is 6,500-7,000 megawatts, but we can only operate 3,500 of it because we do not have enough fuel to operate the fields,” he said.
“If we and Baghdad can benefit from this capability of the Region – when the fuel is provided by Iraqi government for these power stations, we can not only produce 24-hour electricity – we produce 21 hours now – but also produce electricity for other areas in Iraq as well,” Barzani added.
Iraq, a country where summer temperatures reach 50 degrees Celsius, has long suffered from a chronic shortage of electricity. The shortages have in past years been a rallying call for protests, particularly in Iraq's southern provinces.
Iraq imports 1200-1500 megawatts of electricity a day from Iran, a dependency too heavy for the country to not need the waivers.
KRG electricity minister Kamal Mohammed told Rudaw on Wednesday that they would begin selling electricity to Iraq on Friday.
“The Kurdistan Region will sell more than 500 megawatts of electricity to Iraq, starting from August 28. This electricity will be produced in stations which we have not used in the past [for ourselves]. Our investing electricity company will benefit from it and a large amount of money will come to the Kurdistan Region in this way.”