Iraq’s Natural Gas Potential: A Strategic Approach to Mitigating Burned Gas
Iraq currently has a natural gas output estimated at 3.1 billion standard cubic feet per day (SCFD), although it is only capitalizing on 1.8 billion SCFD. The country is wasting approximately 1.3 billion SCFD by burning off this gas, necessitating the import of Iranian gas to generate approximately 8,000 megawatts of electricity from its gas-powered stations.
Addressing Gas Flaring Challenges
Oil expert Hamza Al-Jawahiri notes that Iraq has the potential to eliminate wasted gas flaring that has persisted for over a decade. However, political interference favoring foreign stakeholders has hindered progress in this critical area. "Numerous projects and proposals have all met with failure, but there is now a genuine governmental initiative to utilize this gas," Al-Jawahiri stated. He elaborated that the government is committed to executing a comprehensive plan aimed at curbing the phenomenon of flared associated gas by 2028.
Al-Jawahiri expressed optimism, stating that "this initiative is critical for the realization of Iraq’s gas potential, allowing us to move away from flaring and to capitalize on an asset that could yield billions in economic benefits."
Potential for Increased Electrical Output
Economist Nabil Al-Marsoumi explains that successfully harnessing burned gas could add an additional 5,200 megawatts to Iraq’s electrical grid. He further noted, “To achieve self-sufficiency in gas, Iraq will still need to produce an additional 700 million SCFD.” This additional production could be sourced through increased oil output of one million barrels per day, tapping into associated gas, or utilizing unexploited gas reserves in fields like Akkas, Mansourieh, and Shash Al-Ahmar. This assumes that existing electricity generation reliant on gas does not necessitate the construction of new gas-powered plants.
Regulatory Landscape and International Implications
According to Farhad Aladdin, an advisor to the Prime Minister on foreign relations, "the U.S. exemption for importing gas from Iran remains in effect." This is pertinent as Turkey has begun importing gas from Turkmenistan via Iran in light of the ongoing U.S. sanctions.
Strategies to optimize Iraq’s gas utilization not only have the potential to meet domestic energy needs but also to enhance the country’s economic stability. With continued effort and strategic planning, Iraq stands at a crossroads that could redefine its energy landscape.
