Kurdistan
The two-day MERI Forum 2023 began in the Kurdish capital on October 10, 2023. Photo: Bilind T. Abdullah/Rudaw
ERBIL, Kurdistan Region - The Kurdistan Region is greatly capable of increasing its gas production to a level that allows it to compete on global markets, said its deputy natural resources minister, urging for a clear model to invest into the gas sector.
“The Kurdistan Region has great capabilities to increase gas production and in turn increase the production of electricity,” Kurdistan Regional Government (KRG) Deputy Minister of Natural Resources Ahmed Mufti said during the the Middle East Research Institute (MERI) 2023 forum in Erbil, adding that 85 to 90 percent of the Region’s electricity comes from gas.
MERI is holding a two-day forum in the Kurdistan Region’s capital city of Erbil starting on Wednesday, hosting tens of politicians and leaders from the Region and Iraq.
Mufti said that the Kurdistan Region’s capabilities can, in the future, be developed to an extent where “60 percent” of Iraq’s gas is produced in the Region.
“If all the gas fields in the Kurdistan Region are developed and invested in, it will be able to produce 5 billion cubic feet of gas,” he said.
“We can easily develop our production to compete with world markets,” the deputy minister stressed.
The natural gas produced in the Kurdistan Region is primarily used to generate electricity at three plants across the Region but security threats have prevented companies from implementing their development projects at a faster pace.
A major study of the prospect of the natural gas production in the Kurdistan Region backed by the US Department of Energy found that with the right level of investment, the Region, which currently produces around 5 BCM per year, could exploit its resources further and provide 10 BCM to Iraq proper in the coming years and 10 BCM to Turkey by 2026 when the Iran-Turkey natural gas contract expires.
Dana Gas is currently implementing an expansion project known as KM250 which is expected to increase the production to 700 MMscf/d by April 2023. The project is supported by a 7-year $250 million financing agreement announced in September 2021 in conjunction with the U.S. International Development Finance Corporation.
Mufti also stressed the importance of addressing gas flaring in both the Region and in Iraq due to its negative impact on the environment.
Gas flaring is the process of burning excess gas produced by oil wells that is not captured or used, and a practice that Iraq is notorious for, the country being second only to Russia in terms of the amount of gas burned off.
Iraq also suffers from chronic electricity shortages, felt especially when summer temperatures reach scorching levels of over 50 degrees Celsius. The high temperatures subsequently lead citizens to consume very high amounts of power.
The KRG failed to meet its own gas flaring directive deadline, which was set for earlier this year, as the progress was slowed by late payments to international oil companies (IOCs) working in the Region and the onset of the coronavirus pandemic.
“Sudani’s cabinet said that they plan to plant five million trees, but if you truly want to make a change, go and tackle gas flaring, which will have a much more significant positive impact on the environment,” Mufti stressed, referring to the government of Iraqi Prime Minister Mohammed Shia’ al-Sudani.
“In this government, the prime minister has stressed that gas flaring needs to be completely eliminated,” said Falah Al-Amiri, advisor to the Iraqi prime minister, said in response.
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