Written by: Salma Al-Saqqa
Iraq needs about eight billion standard cubic feet of natural gas per day to achieve sustainable electricity production around the clock, as structural deficiencies and energy waste lead to financial losses of about ten billion dollars annually, according to official estimates.
Energy Sector Requirements and Industrial Subsidy Reduction
Ahmed Mufti, Deputy Minister of Natural Resources in the Kurdistan Regional Government, explained in a specialized analysis that government subsidies for the heavy industries sector, especially cement and steel factories, consume nearly eight billion dollars annually. He praised the adjusted pricing mechanism for heavy fuel oil, stressing the need to direct the financial savings achieved directly toward developing natural gas transmission networks.
He added that transitioning heavy industry clusters, such as those in the Bazian area in Sulaymaniyah, which consume large quantities of fuel daily, to rely on natural gas would significantly reduce production costs, limit environmental emissions, and provide additional quantities of heavy crude for export markets.
Development Opportunities and Investment in Gas Fields
The official highlighted the significant upstream potential in undeveloped non-associated gas fields, such as Akkas in Anbar, and Mansuriyah and Khashm al-Ahmar in Diyala. He called for the launch of a licensing round for investment supported by strong legal, security, and sovereign guarantees to develop these vital assets.
In the context of reviewing the foreign investment model in the Kurdistan Region, he pointed to the notable growth in gas production from the Khor Mor field, along with the development of adjacent fields such as Chemchemal, Khormale, and Topkhana, which could raise regional production to higher levels that contribute to meeting a large portion of national needs.
Gas Integration Framework for Power Generation
The official proposed an integrated framework that connects gas to energy, such that electricity generated by gas in the north is pumped directly into the federal transmission network, enhancing economic compatibility between Baghdad and Erbil. Recommendations also included establishing a joint security command to protect energy infrastructure, settling outstanding dues to international oil and gas companies, and a call to rename the Ministry of Oil to reflect the central role of gas in future industrial strategy.
