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Prime Minister Nechirvan Barzani at a major energy conference in Erbil yesterday said that Kurdistan’s relations with Turkey in the energy sector have entered a new phase. He expressed his optimism that after his recent visit to Turkey, more political will and understanding will lead to stronger economic relations.

In his speech at the energy conference, the Prime Minister said, “We hope that our natural resources will be a source of prosperity for all the people of Iraq. The presence of Minister Taner Yildiz [Turkey’s Minister of Energy and Natural Resources] and other Turkish guests is a sign of our cooperation with Turkey in natural resources, and a testament to how we can support this important sector through our historic ties in this region.”

The Prime Minister was speaking at a two-day conference on “Energy and the Kurdistan Region’s Road to Development”. He said, “Because of our policies, we have been able to put the Kurdistan Region on the world map. I have no doubt that we will have an important role in providing energy to the world.”

The governors of Ninevah and Kirkuk provinces participated in the conference. Noting their attendance, Prime Minister Barzani said, “Some other areas in Iraq are following the same path to learn from our expertise, as it is their right to manage their own resources in their governorates, according to the law and Iraq’s federal constitution.”

Turkey’s Minister Yeldiz spoke about the vital trade partnership between Turkey and the Kurdistan Region, which accounts for some 70% of the 11 billion dollars of trade with Iraq. On energy policy, he said, “Turkey’s future energy requirement is 48 – 50 billion cubic metres of gas. Our neighbour has a significant role to play in this.”

He added, “With the Kurdistan Regional Government and the Iraqi government, we will develop such projects and we will stand by them when they face problems. We have a multi-directional energy policy, and northern Iraq will not be an exception to this."

Dr Ashti Hawrami, the Kurdistan Regional Government’s (KRG) Minister for Natural Resources, said in his presentation, “Turkey means for us the access route to monetise oil and gas and create benefits for the Iraqi people.”

Iraq  has announced the names of foreign companies bidding to build a $1 billion, 1,500 megawatt, power plant in western Iraq, according to a report from Reuters:

• South Korea's Hyundai Engineering & Construction;
• Italy's Saipem;
• Greece's Metka;
• Turkey's Gama; and,
• a consortium of Turkey's Calik Enerji and Italy's Techint.

The plant will consist of six units: four gas units and two "thermal" units, deputy minister of electricity, Salam Qazaz told the agency.

The plant is due to be completed in 33 months.

(Source: Reuters)

Iraq is to import 250 megawatts of electricity from the United Arab Emirates in a bid to alleviate the country's electricity shortage.

Electricity Ministry Spokesperson, Musaab al-Mudarres, said the power will be supplied by UAE's Oilfield Services at a price of 7.5 cents per kilowatt-hour.

According to the report from Aknews, the spokesman added that the Ministry will annul the contract in the event that the company fails to install and provide electricity within two months, insisted that the company should be providing electricity in July.

(Source: AKnews)

More than $5m (5.8bn IQD) worth of fuel is stolen each month from the amount allocated to three Turkish barges that produce power in Basra, a government investigation has revealed.

According to the report from Aknews, Iraq's Electricity Ministry announced the discovery following an ongoing investigation into fuel theft.

The Inspector General of the Ministry, Alaa Mohiuddin, said during a press conference held at the ministry in Baghdad:

"The investigation is under way about the theft of fuel and it will be submitted to the Office of the Minister and the regulatory authorities when it is completed ... The three Turkish barges are operating in Basra and are provided with free fuel based on a contract signed with the Ministry of Electricity and the Ministry of Oil ... The fuel is stolen by the company responsible for the transfer of fuel waste."

Iraq has spent around $27bn (31.5bn IQD) since 2003 to provide electric power to its citizens, but the national network is only capable of providing electricity for just a few hours a day.

Iraq needs at least 15,000 MW to meet the high demand for energy but currently is capable of producing only 7,000 megawatts.

(Source: AKnews)

As our regular readers will already know, there is a wealth of opportunities available in all sectors of the Iraqi economy. In recent days alone we've reported developments in hospitals, oil infrastucture, and air transport.

Industry analysis and reports are important tools for many businesses interested in breaking into the Iraqi market, and one particular report that came across our desks recently is the EIC Iraq Energy Overview 2012, which will make particularly interesting reading for all involved in oil, gas and electricity.

The authors, EIC Consult,  expect a minimum investment of $50 billion over the next five years in Iraq's energy industry.

Admittedly this is the sector that will drive the Iraqi economy, but the scale of the investment required in other fields is similarly impressive. You can find our full collection of free and available-to-buy reports by clicking here.

The energy sector in Iraq is predicted to see investment of a minimum of US$50 billion over the next five years amidst a gradually improving security situation. This was one of the key findings of ‘Iraq – An Energy Overview 2012’, a comprehensive country report developed by EIC Consult, the market research and consultancy arm of the Energy Industries Council (EIC).

The EIC Consult report found that, despite continued concerns over security, political instability, and the lack of a settled investment environment, the proposed infrastructure overhaul and ambitious plans to increase oil & gas production present huge and long-term opportunities for service providers at every stage of the supply chain.

The report stresses that Iraq remains the largest and most underdeveloped oil nation in the world today, with fewer than ten wells drilled annually since 1980 and only 25% of the country comprehensively explored for energy resources. As of 2011, Iraq had around 80 commercial oilfields and daily oil production averaged 2.65 million barrels per day (b/d).

While, if completed, the deals signed during Iraq’s licensing rounds would raise production to 12 million b/d by 2017, the report predicts a more conservative estimate of a minimum of around 6 million b/d and a maximum 8 million b/d by the end of 2017.

Part of the reason for this slower growth, the report claims, is the lack of definitive revenue sharing, federal oil investment and national hydrocarbon laws, although with the previously delayed Fourth Licensing Round due to take place on May 30th and 31st 2012, the report cites causes for optimism. The report stresses, however, that the round’s status still remains far from certain, due to political wrangling between the Iraqi Executive and the Parliament.

ABB, the leading power and automation technology group, has won an order worth around $16 million from Mass Global Investment Company for the construction of a substation and SVC Light (static var compensator) system that will supply electricity to a new melt shop and steel rolling mill in northern Iraq. The order was received in the first quarter.

The steel manufacturing plant will have an annual melting capacity of 1,000,000 tons of billets. Its furnace capacity will be 120 tons and the plant will use scrap metal as input material. The rolling mill part of the plant will have an annual capacity of 650,000 tons of steel bars produced from billets.

ABB is responsible for the design, engineering, supply and commissioning of the project. The turnkey scope of supply includes 132- and 36-kilovolt (kV) switchgear with disconnector circuit breakers (DCBs), control and protection systems, transformers and the SVC equipment. The project is scheduled for completion by 2013.

“This solution will boost transmission capacity to serve the needs of the steel plant and enhance grid reliability in the region. The solution will also improve the quality of electricity supply and efficiency of the manufacturing process,” said Brice Koch, head of the Power Systems division.

ABB’s innovative, compact and energy-efficient DCB integrates the disconnecting function into the circuit breaker, thereby eliminating the need for separate conventional disconnectors. This reduces the footprint and minimizes maintenance requirements.

The station will also be equipped with an SVC Light reactive power compensation technology. SVC Light is part of ABB’s FACTS (flexible alternating current transmission systems) portfolio that enhances the security, capacity and flexibility of power transmission and distribution systems, and improves productivity and power quality. It’s highly dynamic response capability, makes it ideally suited for applications in the metallurgical industry where it helps mitigate electric arc furnace flicker, thereby improving efficiency.

Iraq's electricity ministry signed the $363 million, 1,014 megawatt, power plant deal with Egypt's Orascom Construction, which was announced in February.

The contract involves building the plant and installing six 169 MW generators, which Iraq bought from Siemens in 2008, at the facility in Baiji [Beiji, Bayji].

The project is expected to be completed within 21 months.

(Source: Reuters)

Nine years after the war and with billions of US dollars spent, electricity is still in short supply in Iraq.

The government is looking to use electricity-generating ships to meet the expected uptick in demand in the coming summer months.

In electricity-strapped provinces like Basra, where the power generated by a Turkish 'floating electricity plant' is diverted to the national grid, there is an especially high need.

Jane Arraf reports for Al Jazeera from Abu Falous Port in Basra:

(Source: Al Jazeera)

Siemens has announced that it has won a major order from the Iraqi Ministry of Electricity to supply the control and instrumentation system, field equipment, and spare parts for steam turbine generators  for Iraq's largest power plant at Al Mussaib [Musayyib].

The upgraded plant will be more reliable, and will have higher output and increased efficiency. Work is to be completed in 2013.

Siemens said the scope of supply includes new rotating elements for the four 320-megawatt (MW) steam turbines, generator rotors and the complete instrumentation and controls system.

The latest order follows the successful rehabilitation of the control system in unit 2 in 2009 and unit 1 in 2010, it added.

In addition to this, Siemens has also signed two separate contracts with Iraq’s Ministry of Electricity for gas-insulated switchgear (GIS) substations as part of the ministry’s plans to upgrade its 132-kV power transmission network.

Under the first contract, Siemens will supply and carry out civil and supervision works on six 132/33-kV GIS substations at various locations in the country.

The second contract covers the construction of another six 132/33-kV GIS substations on a turnkey basis in Iraq. The contracts for the substations are due to be completed by October 2013, the energy giant said.

Commenting on the deal, Dietmar Siersdorfer, Siemens Energy CEO, Middle East, said:

“Iraq is facing acute and critical challenges in providing reliable power to all the country's residents and Siemens is fully committed to assisting the Ministry of Electricity in meeting those challenges.

“We have a long history in Iraq and the wider Middle East, and understand that this is an issue of utmost importance to the Ministry and the people of Iraq. With our complete portfolio of proven products and service solutions, we are well-positioned to address this issue.”

In addition to the latest order for Al Mussaib power station, Siemens also performed the renovation of the control system in the Al Hartha power station near Basrah in 2010, which was destroyed by a fire.

(Sources: Trade Arabia)