Iraq Is Capturing More Natural Gas While Also Burning More Of It

In June the World Bank reported that Iraq was one of the largest gas burning countries in the world. Iraq and 8 others accounted for 75% of gas flaring. Iraq actually increased this practice in recent years. Gas is emitted from oil fields and if it isn’t captured to be used for commercial use it is burned off which contributes to global warming. This comes as Baghdad claims it is producing more natural gas and that flaring is soon going to come to an end.

 

On June 9 Prime Minister Mohammed al-Sudani announced that gas production reached 24,800 cubic meters per day up from 15,000 in 2022. This came as new contracts were being signed and gas processing plants were opening such as one in Maysan in the same month. As a result the PM claimed that 61% of gas produced was being utilized.

 

The government’s goal is to be self-sufficient in natural gas by 2027 and end flaring by 2028 or 2030 depending upon who is talking and when. On top of that the Oil Ministry hopes to export gas in the near future.

 

Iraq currently spends around $5 billion per year buying gas from Iran to fuel its power plants. Tehran often cuts off supply when it needs gas for its own use and because Baghdad has chronically failed to pay its bills on time.

 

As the World Bank notes there is a difference between what the government claims and what is actually happening. Iraq might be capturing more gas but it is also producing more and burning more.

 

Iraq Oil Report has pointed out various problems with Iraq’s plans. There have been disputes over financing, a lack of coordination between the Basra Gas Company and the oil field operators, security issues and bureaucratic red tape. The companies that run the Basra fields for instance have no incentive to work with the Basra Gas Company because of their contracts.

 

The situation is similar to Iraq’s oil industry which has never reached its lofty goals. The country has never completed the infrastructure it always promises. Contracts are often problematic, corruption is rampant and the bureaucracy is dysfunctional because most officials are political appointees with no experience or expertise in their fields and actions usually require the top officials approval. This has created a long history of government promises which are rarely if ever accomplished.

 

SOURCES

 

Iraqi News, “Iraq to stop gas imports by 2027,” 5/14/24

 

Salem, Amr, “Baghdad signs contract to develop Iraq’s second largest gas field,” Iraq News, 5/20/24

- “Iraq among largest gas flaring countries in 2023,” Iraqi News, 6/26/24

- “Iraq increases gasoline production and shifts towards exportation,” Iraqi News, 5/22/24

- “Iraq’s gasoline production reaches 24,800 cubic meters per day,” Iraqi News, 6/9/24

 

Van Heuvelen, Ben, Dourian, Kate, Al-Aqily, Ali, Al-Sa’di, Jewdat, “Gas capture projects advance as Iraq aims to end flaring,” Iraq Oil Report, 4/10/24

 

Xinhua, “Iraq inaugurates associated gas processing plant in Halfaya oil field,” 6/9/24