Turkey seeks a ‘win-win’ natural gas supply deal with Iraq: Erdogan
ERBIL, Kurdistan Region - Turkish President Recep Tayyip Erdogan said on Friday that his country is holding meetings with Iraqi authorities to strike a “win-win” deal to import Iraq’s natural gas, adding that Kurdistan Region President Nechirvan Barzani has promised to facilitate the talks.
Speaking to reporters on a return flight from Ukraine, Erdogan said his country is consuming natural gas economically, adding that only the supply of natural gas to the industry has decreased, reported the state-owned Anadolu Agency.
President Barzani was received by Erdogan in Ankara on an unannounced trip on Wednesday. Erdogan’s office did not give any information about the meeting at the time but Barzani’s office said they “focused on bilateral relations of Turkey with Iraq and the Kurdistan Region, reaffirming the mutual willingness to further strengthen the important commercial and economic ties between the two sides.”
"Discussions also highlighted other areas of joint partnership, the political status in Iraq and the latest regional developments," it added.
Erdogan said on Friday that he also discussed a possible natural gas supply deal between Turkey and Iraq with Nechirvan Barzani.
“There may be a natural gas supply from Iraq to Turkey. If it happens, it will be even more different. But we as Turkey do not have any natural gas issues,” noted the Turkish president.
Asked if the deal will be with Erbil or Baghdad, Erdogan replied, “Although Nechirvan Barzani is from northern Iraq, we are also discussing and we have discussed with him [issues related] to central Iraq. Our friendship with Nechirvan Barzani is very very different and our relationship is at a high level.”
“He [Barzani] said that he will do his best in this regard and as soon as he returns he will speak with the central government and all relevant authorities,” added Erdogan without clarifying if the deal will be made with Erbil or Baghdad, or both.
Ankara and Erbil enjoy great economic relations, and most of the Kurdistan Region's crude oil is marketed through Turkey's pipelines.
The Kurdistan Region is currently producing natural gas at its Khor Mor field and is looking to develop additional fields. Kurdistan Regional Government's (KRG) minister of natural resources, Kamal Atroshi, told Rudaw in August 2021 that the government has banned gas flaring.
Atroshi also detailed efforts to develop the natural gas sector and reserves of about 25 trillion cubic feet, which will require a lot of investment as much of the gas contains highly toxic hydrogen sulfide that will have to be removed.
Kurdistan Region Prime Minister Masrour Barzani said in late October 2021 that his cabinet has increased gas production over the last two years and hopes to double this in coming years.
“We are planning to build the pipeline, and what we are trying in this cabinet is to use most of the natural resources internally because there are so many areas and demands that unfortunately have not been utilized,” PM Barzani said.
“My ambition is really to provide gas for the households. My plan is to build petrochemicals so that we can actually be clients and buyers of our own gas and natural resources, and then process it. That would be much more beneficial to the people of Kurdistan and for the excess gas and the natural resources that we have to be able to export it to outside,” he added.
Matthew Zais, vice-president of government affairs for HKN Energy, told Rudaw in August 2021 that the KRG should be able to compete with Iran and Russia for gas contracts with Turkey that will be coming up for rebids in 2026. “If the right investments are made in time in Kurdistan, then Kurdistan gas could compete for those contracts with Turkey.”