Power disruptions to end in Kurdistan Region as Dana Gas resumes gas supplies: KRG official

ERBIL, Kurdistan Region - The UAE-based Dana Gas will resume gas supplies for electricity generation, ending power disruptions in the Kurdistan Region, a senior Kurdish official confirmed to Rudaw on Tuesday, expressing hope that the new government in Baghdad will arm Erbil with the defenses it needs against ongoing attacks on the Kurdistan Region's energy infrastructure. 

Aziz Ahmad, Deputy Chief of Staff to Kurdistan Region Prime Minister Masrour Barzani, stated, "We agreed with Dana Gas to resume gas supplies for electricity generation," adding that the Khor Mor gas field they operate, near the Region's eastern Sulaimani province, "has been targeted 12 times in recent years and three of their personnel have been killed."

Both Dana Gas and the KRG "have suffered losses due to halted production, ungenerated electricity, and the impact on revenues," Ahmad told Rudaw’s Sangar Abdulrahman, explaining that when drone and missile attacks are impending, "gas production is halted," as the damage is much more severe if strikes occur during active production.

The remarks come a day after Dana Gas said Monday that “following updated assessments of the situation and clear assurances received from the highest levels of the KRG and Iraqi governments, the production level at Khor Mor will be carefully and gradually increased.”

The firm added that the move aims to “support the local electricity needs of citizens in the Kurdistan Region and other parts of Iraq.”

In mid-July, Dana Gas had temporarily suspended all operations at the giant Khor Mor field, citing "credible threats" and escalating regional tensions.

"All main production facilities associated with Khor Mor have ceased to work temporarily," the firm said at the time. The decision came against the backdrop of a series of drone attacks on the Region, including the capital city Erbil.

According to Rudaw tracking, since the outbreak of the Iran war on February 28, the Kurdistan Region has endured at least 950 drone and missile attacks launched by Tehran and its affiliated armed groups in Iraq.

Consequently, most of the energy firms operating in the Region have either suspended or reduced production, causing significant damages to its oil production capacity and reducing its average to roughly 75,000 - 80,000.

Ahmad told Rudaw on Tuesday that the Kurdistan Region "does not have air defenses" as "Baghdad does not provide them, and we cannot procure them directly."

"We hope that the new Iraqi Prime Minister [Ali al-Zaidi] and government will not be like its predecessors, who said they would handle the protection of energy and economic infrastructure [in Kurdistan] differently - but whether that can actually be implemented remains to be seen," Ahmad explained.

Beyond the energy dossier, the KRG premier's deputy chief of staff also pointed to progress in Erbil's flagship MyAccount banking initiative to digitalize public employees' salaries.

“More than 1,156,000 public sector workers have registered in MyAccount, leaving just 25,000 employees who must open bank accounts by August 31,” Ahmad said, adding that some “650 ATMs are currently deployed across the Region, with plans to expand to 900 by the end of the year, toward an ultimate target of 1,000 machines.”

Launched in 2023 to modernize payrolls, phase out cash transactions, and provide civil servants with direct access to retail banking services, the project is rapidly approaching full coverage of the KRG's public sector workforce.

Kurdish officials hope that full implementation of MyAccount will help ensure more consistent disbursement of civil servant salaries in the Region amid unresolved financial issues with the federal government.