Iraq discusses gas work with Saudi Arabia
The Iraqi oil ministry said June 7 it was vetting Saudi interest in examining the free and associated natural gas potential in its southern-most province.
Iraqi oil minister Ihsan Ismaael met via teleconference with his Saudi counterpart, Abdulaziz bin Salman, to discuss potential cooperation in energy, petrochemicals and natural gas. The government in Baghdad said that both sides were interested in pursuing a number of projects, including free and associated gas investment projects in the energy-rich southern province of Basra.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Ismaael stressed the government was keen on expanding its bilateral relationship with Saudi Arabia to include not only fossil fuels, but the potential for clean energy as well.
The virtual meeting followed a May decision from the Iraqi government to invest some $3bn in the Basra Gas Company over the next five years. The Iraqi minister said the aim was to increase the gas production capacity by 40%. The investment will help generate about 2,000 jobs, he added.
Basra Gas Company is a joint venture established by the Iraqi government, Shell and Mitsubishi.
The International Energy Agency last year said that Iraq’s budget constraints raise doubts about the government’s plan to capture and use more gas. The country signed deals in 2019 to capture up to 10bn m3/yr of gas to fuel power stations.
The inability of Iraq's power grid to fully meet demand has significantly impeded economic development, with power cuts being a major source of social tensions for years. It also needs a regular waiver from the US to allow it to import Iranian gas, one of its primary suppliers.