Experts: Local gas seen as fastest, cheapest way to boost power output

Baghdad-INA

Economic experts confirmed on Saturday that Iraq possesses substantial natural gas reserves that require greater investment and faster development,they noted that Iraq is not facing a shortage of gas but rather needs to accelerate its investment and convert it into productive energy,they stressed that investing in domestic gas is the fastest and most cost-effective way to boost electricity generation.

Economic experts told the Iraqi News Agency (INA) that “every summer, the electricity crisis returns to the forefront in Iraq, along with a recurring fundamental question: how can a country that possesses one of the largest natural gas reserves in the region continue to face a chronic shortage of electricity?

They added that “the problem does not lie in the scarcity of resources, but rather in the delay in converting domestically produced gas into fuel that powers electricity plants,while energy demand rises in both summer and winter, large volumes of Iraqi gas are still flared or remain unutilized, at a time when the country relies on gas imports to operate a significant part of its power system,” They noted that “Iraq currently produces about 3.1 billion standard cubic feet per day of associated gas, while the amount being utilized domestically is less than 1.8 billion standard cubic feet per day,the remaining volumes are flared due to a lack of gas collection and processing facilities, as well as limited transport and distribution infrastructure.”

They continued that “Iraq, on the other hand, imports up to 50 million cubic meters of gas per day from Iran, equivalent to about 1.8 billion standard cubic feet per day, to operate a number of power plants, at an annual cost estimated at billions of dollars,” They noted that “previous experience has shown that any reduction or interruption in these supplies directly leads to the loss of thousands of megawatts from service, reflecting the extent of the electricity system’s reliance on imported gas.”

Energy experts affirm that “investing in domestic gas is the fastest and most cost-effective option to boost electricity generation, as every 100 million standard cubic feet of gas per day can support the operation of a power plant with a capacity of around 500 megawatts, depending on plant efficiency and the technologies used,this means that utilizing part of the wasted gas volumes would be sufficient to add hundreds, and potentially thousands, of megawatts to the national grid in a much shorter timeframe than that required to build new generation projects from scratch.”

They explained that “the Khor Mor gas field is a practical example of the ability of Iraqi gas to improve the electricity situation in the country, as it produces about 800 million standard cubic feet of natural gas per day and supplies a number of power plants whose impact extends to several provinces, including Kirkuk, Salah al-Din, and Nineveh, not only the Kurdistan Region,”They added that “this field formed the main backbone of the Runaki project, which contributed to providing continuous electricity to millions of citizens within the region, reducing reliance on private diesel generators, and offering a practical model for the potential of domestic gas investment when the appropriate infrastructure is available.”

They noted that “the importance of the Khor Mor and Chemchemal fields is not limited to supporting the electricity sector, as announced agreements indicate the allocation of up to 142 million standard cubic feet per day to supply cement and steel companies with natural gas,This confirms the availability of volumes that can also be directed to industrial sectors, meaning the replacement of heavy fuel oil and diesel with cleaner and more efficient fuel, which would reduce emissions, lower production costs, enhance the competitiveness of national industry, and create new job opportunities.”

Experts believe that “these indicators reflect a real opportunity to reshape Iraq’s energy security map by accelerating associated gas capture projects, developing existing gas fields—foremost among them Khor Mor and Chemchemal—and completing processing and pipeline projects that connect the fields to power plants and industrial areas.”

They stated that “in light of this, the priority for the state today is clear: to accelerate the investment of Iraqi gas within Iraq by speeding up contracts, simplifying investment procedures, and providing a stable environment for strategic projects, and transforming gas from a wasted resource through flaring into a key pillar of energy security, industrial support, and economic growth,” They emphasized that “Iraq does not lack gas; rather, it needs to accelerate the conversion of its gas wealth into productive energy that serves citizens, provides more stable electricity, and establishes an economy that is less dependent on imports and more capable of achieving sustainable development.”