Ministry of Oil of Iraq Announces New Strategies for Gas Industry Development
The Iraqi government has unveiled a strategic plan aimed at advancing the country’s gas sector, targeting the achievement of gas production milestones by 2030. Minister of Oil, Ihsan Abdul Jabbar, stated, “Iraq is poised to remain a significant gas producer for the next century.”
A conference hosted in Baghdad addressed vital environmental issues, energy resources, and the broader economic framework of Iraq. The event featured high-level discussions among various stakeholders in the gas sector.
During the second panel of the conference, Minister Abdul Jabbar provided insights into the historical, current, and future dynamics of the gas industry.
Iraq Ranks 11th Globally in Natural Gas Reserves
Abdul Jabbar noted, “Over the last decade, the oil sector has experienced substantial transformations, largely supported by governmental incentives aimed at enhancing gas production to meet the 2030 objectives.”
Regarding natural gas reserves, he revealed, “Iraq has approximately 127 trillion cubic feet of natural gas, with an annual production of around 140 billion cubic feet. This positions Iraq as the 11th largest natural gas producer globally.”
He further elaborated on gas composition, indicating that “Iraqi gas consists of 25% associated gas and 75% free gas.”
Investment in Gas Production Promises Economic Returns
The Minister of Oil emphasized, “In 2024, we are expecting a significant increase in natural gas production, reaching 66% of total national production, compared to the previous figure of 53%. This marks a 13% rise under the current government cabinet in gas production output.”
Abdul Jabbar projected that “an increase of just 1% in production entails an investment of $1 billion; conversely, a $1 investment in gas production could yield up to $3 in returns.”
The Iraqi government intends to invest approximately $10 billion in gas production between 2020 and 2030, and the revenues are anticipated to reach $30 billion, ensuring an eco-friendly production process.
Plans for Gas Imports and Future Production
Abdul Jabbar indicated that by 2030, Iraq could increase its annual gas production by 6 billion cubic feet, serving as a crucial resource for heightened electricity generation.
In 2024, the country is expected to produce over 1,600 million cubic feet of associated gas, with LPG production projected to reach 9,000 tons per day. “Gas exports are set to increase significantly from 2023 to 2024, with expectations of achieving an annual export of 1 million tons,” he added.
On the subject of gas imports, the Iraqi Oil Minister confirmed that approximately 800 million cubic feet of gas will be imported from Iran. Additionally, the ministry is exploring partnerships with Turkmenistan to secure further gas supplies.