Iraq’s Gas Reserves: A Prolonged Energy Future
The Iraqi Deputy Oil Minister for Energy Affairs has stated that the combined gas reserves of Iraq and the Kurdistan Region amount to 127 trillion cubic feet, which could sustain energy needs for the next century. He emphasized that the Chamchamal region contains the highest quality gas resources.
Dr. Izzat Sabir, Iraq’s Deputy Oil Minister for Gas Affairs, outlined the ministry’s strategic plans for the advancement of gas and electricity production in the country.
As of now, 45 percent of Iraq’s electricity generation derives from gas, a significant increase from the previous level of 20 percent. The Iraqi government continues to negotiate with the Kurdistan Region regarding gas procurement.
Interview Insights
Interviewer: Iraq is reported to hold 120 trillion cubic feet of gas reserves, ranking among the top 15 countries globally. Does this figure solely pertain to Iraq, or does it include the Kurdistan Region?
Dr. Izzat Sabir: The total reserve currently stands at 127 trillion cubic feet, inclusive of the Kurdistan Region’s production. This volume will allow Iraq to utilize its gas resources for over a century. However, to optimize this potential, we must significantly enhance our production capacity to support power plants and expand the number of these facilities.
Interviewer: What types of gas are produced within Iraq?
Dr. Izzat Sabir: Iraq produces two primary types of gas: dry (natural) gas and liquid gas. Dry gas is utilized in power plants, industrial facilities, and cement factories, while liquefied petroleum gas (LPG) serves everyday needs such as home cooking, automotive fuel, and for industries like brick manufacturing and poultry farming. Both gas types are essential components of energy production worldwide.
Interviewer: How does the importance of gas compare to that of oil?
Dr. Izzat Sabir: The significance of gas has become increasingly clear in recent years. Compared to oil, gas is much cleaner and environmentally friendly, making it a superior choice for energy generation. Power plants using gas have fewer maintenance issues than those reliant on crude oil. Nevertheless, Iraq has historically prioritized oil extraction, treating gas as a byproduct. Major oil companies like Exxon Mobil and BP have been involved in developing Iraq’s oil fields without adequately addressing gas extraction, leaving vast gas reserves untapped and potentially worth billions.
Interviewer: What is the current landscape in terms of gas and oil power facilities?
Dr. Izzat Sabir: A decade ago, only 20% of Iraq’s electricity was sourced from gas; this figure has now risen to 45%. Moving forward, no new power plants will be permitted without leveraging gas. For every 1,000 megawatts generated, 200 million cubic feet of gas is required, which facilitates the production of an additional 500 megawatts from waste heat. Consequently, gas-powered plants are becoming increasingly efficient. Iraq is committed to reducing gas flaring and ensuring that all gas is utilized effectively by 2030, thereby minimizing dependency on imported gas.
Interviewer: With the potential shift in US policy, could Iraq transition away from Iranian gas? Will the Kurdistan Region play a role in this transition?
Dr. Izzat Sabir: Discussions are ongoing concerning the provision of gas from the Kormor field in the Kurdistan Region to power plants in Kirkuk. While preliminary talks have occurred, an agreement has yet to be finalized. The Kurdistan Region maintains its priority in utilizing local gas production. If domestic needs are met, any surplus can be marketed elsewhere. We are also exploring alternatives such as gas imports from Qatar or Algeria as part of strategic planning to reduce reliance on Iranian imports.
Interviewer: Will imported gas from regions like Iran be economically viable?
Dr. Izzat Sabir: Generally, imported Iranian gas might be more expensive, largely due to transportation modalities. Liquefied natural gas (LNG) involves complex logistics moving gas via ships, inflating costs compared to pipeline delivery methods. Thus, LNG is typically more expensive than gas transported through pipelines.
Interviewer: Despite gas reserves, why has Iraq struggled to provide continuous electricity to its citizens?
Dr. Izzat Sabir: The challenge is multifaceted, involving consumer behavior, investment, and government organization. A cultural shift is needed where users understand the value of their consumption. Regions in Iraq like Sulaimani and Erbil have successfully implemented Smart Card systems to manage electricity usage without reliance on private generators, demonstrating potential reforms. Continuing to enhance this structure could enable 24-hour service across more cities.
Interviewer: Are there plans to replicate successful energy management experiences across Iraq?
Dr. Izzat Sabir: Some areas in Baghdad have adopted successful private sector initiatives for energy management, similar to those in Erbil and Sulaimani. To adequately address the electricity deficit, Iraq must embrace restructuring to improve revenue collection from consumers while optimizing resource usage. The energy sector is divided among various government ministries, all requiring coordination for maximum effectiveness. We have significant projects, such as a 2,000 megawatt facility in Diyala, but investment timelines for gas extraction are still lengthy.
Interviewer: Some recent contracts have emerged in contentious areas. What is the current stance on these projects?
Dr. Izzat Sabir: The contracting has occurred in phases, targeting fields near disputed regions. New oil fields have been awarded to BP, and current contracts have been made without involving the Kurdistan Region, complicating relations. We hope ongoing negotiations for oil and gas law clarity will lead to resolutions in disputed areas.
Interviewer: What is known about gas reserves in the Kurdistan Region?
Dr. Izzat Sabir: The Kurdistan Region boasts considerable gas reserves, notably in the Chamchamal and Kormor fields. Chamchamal is recognized for its high-quality, clean gas. The reserves are predominantly free gas, which is immediately usable, contrasting with associated gas, which has higher unwanted byproduct content. The Kurdistan Region has the potential to significantly contribute to Iraq’s energy needs while advancing its own economic interests.