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By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani, has announced the restart of the first unit of the Doura Gas Power Plant at the Midland Refineries Company (MRC), generating 18 MW of electricity to support the national grid.

Efforts are ongoing to complete the second unit, which will add a similar capacity.

The Minister praised the workers for their contributions to restarting the unit, which had been out of operation since 2019, and highlighted the collaboration between the Midland Refineries Company and the Ministry of Electricity.

(Source: Ministry of Oil)

From the Iraq Britain Business Council (IBBC):

Dr Luay Al- Khateeb is joining IBBCs advisory council and brings his energy expertise to the council.

As a long-standing friend of IBBC Dr Luay has chaired energy panels at IBBC major conferences. As an independent Iraqi politician he was the former Electricity Minister and member of the Federal Energy Council in the Government of Adil Abdul-Mahdi  between 2018-2020. Prior to this, he was the founding director of the Iraq Energy Institute, a think tank producing scholarship and analysis on current, historic and future energy, economy and technology trends in Iraq, as well as organizing high-level fora on energy reform in Iraq and the region.

A frequent commentator on Iraq's energy strategic policies and an advocate of sector-wide reforms, Al-Khatteeb is currently a non-resident Distinguished Fellow at the Center on Global Energy Policy (Columbia University-SIPA.), Honorary Professor at the University of Exeter, former foreign policy fellow at Brookings, and has written articles and published reports for a range of publications include   The New York Times,  Harvard University, Columbia University,  CNN, MEES, the Petroleum-Economist and The National among others.

Previously, he served as honorary advisor to the Federal Parliament of Iraq on Energy and Economy. Between 2014 and 2016

Al-Khatteeb has held several longstanding positions on energy in Iraq and the region, being an outspoken advocate of modern gas to power strategies, eliminating gas flaring and providing feedstock for power and linked industries, particularly in Iraq.

In conversation with Dr Al-Khateeb, we asked the following questions:

Q; What are your hopes for involvement with the Advisory council?

A; I look forward to support the IBBC business community in Iraq as well as help guiding the IBBC organisation to navigate its way to explore better opportunities that will contribute to the development of the country and its reconstruction campaign,

Q: Do you have any key issues you'd like to pursue via IBBC such as Energy transition or specific reforms?

A: Energy development, energy security and energy transition are all priority topics on the agenda to promote and strengthening the ties between the United Kingdom and Iraq,

Q: Would you like to comment on the recent Mansion house panel you chaired?

A: The participants at the energy panel that took place at the 15th IBBC annual conference demonstrated the level of progress in the energy sector across Iraq, including gas, power, upstream and downstream as well as renewable energy development. It was great to see such progress and that Iraq will eventually end gas flaring by 2028 while capturing such important commodity and utilising it for industrial development and feedstock supply for power generation, saving Iraq billions of dollars a year from expensive imports and contributing significantly to the country's GDP.

The IBBC advisory council serves to strengthen and spread IBBC's knowledge and influence and allows IBBC to access some of the most experienced minds who have been involved in Iraq over the years. This access allows us to connect where necessary with High-ranking officials, draw on the expertise and experience and develop our thinking and ideas. Recent member additions include Riad Chehayeb of Serco, Professor Frank Gunter of Lehigh University's report on De-dollarisation and Dr Shamal Mohammed of Silal.

Mr Christophe Michels. MD IBBC says' Dr Luay is well known to IBBC members, and we are delighted he is augmenting the advisory council with his expertise in energy and Iraqi politics'

By John Lee.

Prime Minister Mohammed Shia Al-Sudani initiated the expansion of Al-Haidariya [Haydariya] and Najaf combined-cycle gas power plants, adding a total capacity of 495 MW, alongside a new 400 kV transformer station.

These projects are part of a strategic agreement with Siemens, which includes two phases: the first phase involves three plants in Najaf, Karbala, and Baghdad, and the second phase includes two plants in Basra and Diyala, with a total capacity of 7500 MW.

Al-Sudani emphasized the significance of these projects for Iraq's electrical system, particularly in Najaf, which faces supply shortages. The government prioritizes improving services, including electricity, by ensuring fuel supply, utilizing associated gas, and enhancing transmission and distribution sectors. He noted the need to review consumption policies that impact the system's performance and stressed partnerships with competent companies to alleviate bottlenecks and optimize production and distribution.

The Prime Minister directed the Minister of Electricity to supervise operations in Najaf for a week, especially in preparation for the Arbaeen pilgrimage. He praised the workers enduring extreme conditions to maintain the power sector. Combined-cycle power generation offers significant benefits, adding capacity without extra fuel and utilizing flared gas, saving billions annually.

(Source: PMO)

By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani, has inaugurated a 56 MW gas power plant at the Majnoon oil field and supervised the trial operation of the second Central Processing Facility (CPF2) with a capacity of 200,000 barrels per day.

The gas power plant will supply electricity to the production facilities in the Majnoon oil field and connect to the national grid.

The CPF2 unit, composed of two 100,000 barrel-per-day trains, will bolster crude oil production and associated gas utilization. Abdul Ghani praised the national effort in managing the field and emphasized the importance of these projects in supporting the ministry's plans to maintain and increase crude oil production and gas utilization.

The inauguration was attended by the Deputy Minister for Extraction Affairs, officials from oil companies, and other ministry representatives. Abdul Ghani's visit to Basra also included the opening of several oil and service projects.

(Source: Ministry of Oil)

By John Lee.

The Iraqi government has approved the recommendation from the Ministerial Council for Energy (24067 T) of 2024 to sign a tripartite agreement involving the Ministry of Electricity, Siemens Energy, and the China State Construction Engineering Corporation (CSCEC).

The agreement focuses on the rehabilitation of the Baiji Gas Power Plant (Unit 2), designating CSCES as the main contractor and Siemens as the secondary contractor. The agreement outlines the following commitments:

1. Ministry of Electricity: Responsible for obtaining necessary government approvals.
2. CSCES: Acts as the main contractor, responsible for financing the project and providing and installing auxiliary equipment (BOP), including fuel systems, fire protection, treatment systems, compressors, piping, valves, and civil works.
3. Siemens: Acts as the secondary contractor, responsible for supplying main equipment such as gas turbines, electric generators, main transformers, substations, and control centers, ensuring project execution according to Siemens' global standards.

The agreement also considers the possibility of converting the project under the Chinese Export Credit Agency within the investment account.

(Source: PMO)

By John Lee.

Iraq has signed an amendment to the loan agreements provided by the German Development Bank (KfW) to finance several developmental projects.

The signing ceremony last week was attended by Finance Minister Taif Sami Mohammed and the bank's representative to Iraq.

The new amendment includes extensions for the disbursement period of the loans for the following projects:

• Rehabilitation of Infrastructure for Electricity Supply in Liberated Areas (Phase III): The loan agreement amounting to €140 million has been extended until January 15, 2027.
• Rehabilitation of Infrastructure for Roads, Bridges, Water, and Sewage Systems: The loan agreement amounting to €90 million has been extended until December 31, 2026.

These extensions are aimed at ensuring the continued development and completion of essential infrastructure projects in Iraq, contributing to the country's overall reconstruction and growth efforts.

(Source: Ministry of Finance)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani inaugurated four new military manufacturing factories of the Military Industrialization Authority.

The inauguration took place at the General Company for Military Industries complex in southern Baghdad and included a virtual participation. The ceremony was attended by the Minister of Electricity and other officials.

Newly Inaugurated Facilities:

1. Light Ammunition Production Factory: Featuring testing laboratories and shooting ranges.
2. Mortar Shell Factory: Includes hot forging and aluminum injection workshops.
3. Iron and Non-Ferrous Metal Alloy Factory: Part of the General Company for Military Industries.
4. Transformer Rehabilitation and Maintenance Plant: The first phase of this plant was also inaugurated, with plans to contract with the Ministry of Electricity based on its annual production capacity.

Additional Projects Launched:

• Light Ammunition Capsule Manufacturing Plant: Initiated the execution phase.
• Military and Civilian Boat Manufacturing Plant: Commenced operations.
• Medium Ammunition Production and Oil Production Projects: Reviewed progress.
• Electric Car Manufacturing Plant: Inspected ongoing construction with plans to open by the end of the year.
• NATO Standard Light Ammunition Plant: Assessed current work.

Prime Minister Al-Sudani praised the efforts of the Military Industrialization Authority and its experienced workforce, noting the significant advancements since the approval of Law No. 25 of 2019. He emphasized that nearly 12 factories are either completed or in progress, aiming for completion by year-end, aligning with the government's developmental program.

Strategic Significance:

Al-Sudani highlighted the dual benefits of domestic military production: reducing foreign currency outflow and enhancing Iraq's sovereignty. He directed security ministries to prioritize the Authority's products and instructed the Ministry of Defense to reassess all defense procurement committees and the handling of scrap materials, with a report due within a week.

Key Points from Al-Sudani's Address:

• Acknowledged significant strides in establishing a defense manufacturing sector with high-quality, standardized products.
• Emphasized the importance of a self-sufficient military industry for national security.
• Pointed out ongoing regional and international military developments, underscoring the need for Iraq to maintain a robust defense manufacturing capability.
• Urged strict adherence to Cabinet decisions ensuring the provision of raw materials for military manufacturing.
• Highlighted that military products should be supplied to security ministries as per existing laws, stressing accountability and oversight in procurement processes.
• Confirmed ongoing support from the Cabinet for the Military Industrialization Authority, expressing optimism for future achievements.

Prime Minister Al-Sudani reiterated the necessity of compliance from all security bodies with Cabinet decisions and called for continued legislative and executive scrutiny to ensure transparency and efficacy in military procurement.

Ministries' Commitments:

The Ministry of Interior has already made significant contracts with the Military Industrialization Authority. Other security agencies have been directed to comply with Cabinet resolutions, affirming the essential role of state institutions in supporting domestic military manufacturing.

(Source: PMO)

By John Lee.

The Deputy Minister of Oil for Gas Affairs, Ezzat Saber (pictured), emphasized the urgency of accelerating the investment in associated gas from oil operations at the Bazargan field in Maysan province.

The goal is to harness 70 million standard cubic feet per day (MMSCFD) to support and enhance the energy sector, generating 250 megawatts (MW) of electricity.

During a meeting with relevant companies and departments, Saber stressed the ministry's commitment to utilizing all gas quantities available for investment from oil fields.

He highlighted the importance of quickly implementing the 18-inch gas pipeline between Bazargan and Halfaya to facilitate this investment.

(Source: Ministry of Oil)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani opened the Iraqi-Turkish electricity interconnector on Sunday, via a video conference.

The new line connects through the Al-Kisk station west of Mosul to supply the northern region with a capacity of 300 MW. The ceremony was attended by the Minister of Electricity.

Al-Sudani praised the efforts of the Ministry of Electricity's teams, especially those from the General Company for Northern Electricity Transmission, for completing this project which has been delayed since 2004.

Al-Sudani highlighted the strategic importance of extending the connection to the Turkish grid and potentially to the European network. This initiative is part of the government's vision for regional connectivity, including plans to link with the Gulf Cooperation Council (GCC) power grid by the end of the year, enhancing Iraq's integration into the regional energy system for diversified and reliable electricity supply.

The project involved the construction of the 400 kV Al-Kisk substation, the first-time use of ultra-precision thermal wires for the 115 km transmission line, the extension of a 132 kV line to Tal Afar, and the installation of voltage stabilizing capacitors.

This power link will transfer 300 MW from Turkey to Iraq, helping to meet peak demand in the provinces of Nineveh, Salahuddin, and Kirkuk.

(Source: PMO)

By John Lee.

On Thursday, Dr. Haider Mohammed Makkiya, President of the National Investment Commission (NIC), met with a team from the United Nations Development Programme (UNDP), led by Mr. Mamunur Rashid, the Environment, Energy, and Climate Change Program Portfolio Manager.

According to a statement from the NIC, the discussions focused on enhancing cooperation between the Kuwait Direct Investment Promotion Authority (KDIPA) [!?] and the United Nations to improve the country's investment environment, emphasizing the importance of social and environmental justice, and considering citizens' rights concerning climate change and investment.

Dr. Makkiya highlighted the NIC's role in providing investment opportunities aimed at reducing emissions. This includes granting an investment license to the French company TotalEnergies for a solar power plant projected to produce 1000 MW of electrical energy. Collaborative efforts are also underway with the Ministry of Electricity on additional solar energy projects.

Dr. Makkiya stressed that Iraq currently presents an attractive environment for foreign investments. He noted that Iraq's laws now recognize foreign judgments, which enhances its appeal to international investors. Additionally, KDIPA is working with the UNDP to develop a comprehensive climate investment plan in collaboration with relevant sectoral entities.

(Source: NIC)