The shortage of gas in Iraq
reports Iraq’s Mehr News Agency in recent weeks, not only due to pressure OPEC, but also due to an attempt to guarantee natural gas. Iraqi oil minister Hayan Abdul Ghani said on Iraqi television that talks with several companies to supply two “Floating Storage and Gas” units (FSRU) will continue until early June. These floating terminals are needed to eliminate the shortage of natural gas due to the US exemption that had previously allowed Iraq to import Iranian electricity. The two terminals are to be deployed near the Port of al -Zubair in Basra. Baghdad has announced a tender for a re -gas platform at the Great Port of Faw in the south of the country.
Baghdad is negotiating for the import of Liquid Liquid Natural Gas ( ) to feed its new float gas terminals. TAQA Arabic Energy Platform reported that Baghdad has been approaching to finalize the contract with Algeria to secure LNG . The agreement, which is expected to be announced in the next two months, could be a vital path, as Iraq is facing a shortage of energy on the eve of summer and winter.
Also, according to news reports, Baghdad has targeted African markets for its crude oil export. Currently, 2 percent of Iraq’s oil exports to Asia is from 5 % to 4.3 million barrels. The Iraqi oil minister stressed that Africa is becoming a new export destination. Iraq also increases its production capacity with the support of three new contracts issued in the last round of licensing in nine provinces.
Iraqi Deputy Oil Minister Khazir Khazir announced Sunday to increase crude oil production to more than 5 million barrels a day to year 2 or 2. The development includes a new agreement with the British Energy Giant British Petroleum to develop four key oil fields in Kirkuk. Its production is currently approximately 1.5 million barrels per day.
Iraq is the second largest producer in the OPEC Plus group, including OPEC members and its allies such as Russia. Last month, Baghdad emphasized his adherence to the OPEC Plus oil agreement and announced that it would present a new plan to compensate for any surplus production.
US President Donald Trump launched a maximum pressure campaign against Iran in February.
The start of this campaign was not unexpected. Trump has repeatedly stated that his goal is to zero Iran’s oil exports. Iran has also warned that the campaign has destabilized the global oil market and damages consumers.
In addition to purchasing these two gas terminals, Baghdad also considers Africa markets for oil exports. Currently, 5 % of Iraqi oil exports to Asia goes to Asia. Iraq is also developing its production capacity with a new contract in nine provinces.
The country will also sign a contract with Algeria soon to supply liquefied natural gas. The deal will be crucial when Iraq is facing a shortage of energy on the eve of summer. According to the contract , Iraq will receive 5 million tons of liquid natural gas annually.
Despite all these decisions and contracts, stopping electricity and gas imports from Iran is a major challenge for Iraq. 5 % of Iraq’s electricity production depends on Iranian natural gas.
