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By John Lee.

State-run Iraqi News Agency (INA) has reported the opening of the processing plant for associated gas at the Halfaya oilfield.

It was opened on Friday by the Governor of Maysan, Ali Douai Lazem.

The facility has a capacity of 300 million standered cubic feet [per day?], which will be used to power the Amara and Maysan electricity stations.

(Source: INA)

From Tasnim, under a Creative Commons licence. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iran and Iraq will jointly set up a joint bank and trade zone in the near future, the director general of the Trade Promotion Organization of Iran (TPOI) for the Arabic-African Affairs Office said on Tuesday.

As an influential Arab country, Iraq is very important to Iran, so initial licenses were issued in 2021 for launching two trade centers in the cities of Iraq, Farzad Piltan noted.

He went on to say that targeting $20 billion worth of trade between the two countries has been put atop the agenda of Iran.

The private sector can play a leading role in the materialization of the objectives defined in this regard, he stated.

Iran exported $3.5 billion worth of non-oil products to neighboring Iraq in the first five months of the current Iranian calendar year (March 21 to August 22, 2023), showing a 24 percent hike compared to the same period last year, he noted.

This is while Iran had exported about $1.887 billion worth of non-oil commodities to Iraq from March 21 to August 22, 2022, Piltan emphasized.

Effective planning has been made for the promotion of trade ties with Iraq in various sectors including export of technical-engineering services, transit of goods, export of gas and electricity, etc, he continued.

Elsewhere in his remarks, the official revealed plans for the establishment of five trade centers in the Iraqi cities of Baghdad, Basra and Karbala.

Also, a joint bank and trade zone will be set up between Iran and Iraq in the near future, Piltan reiterated.

By John Lee.

The United States has emphasized the urgency of reopening the Iraq-Turkiye Pipeline (ITP) as soon as possible.

Full statement from The White House:

Deputy Assistant to the President and White House Coordinator for the Middle East and North Africa Brett McGurk and Deputy Assistant and Senior Advisor to the President for Energy and Investment Amos Hochstein met last night with Prime Minister Mohammed Shia al-Sudani of Iraq to confirm the strong U.S. partnership with Iraq as outlined in the Strategic Framework Agreement between the two countries.

The United States took special note of Prime Minister Sudani's leadership moving Iraq's policy towards strengthening its own energy security, including with electricity grid connections to Jordan, Kuwait, and Saudi Arabia, as well as major energy deals with western firms to capture flared gas in southern Iraq for domestic use and future export.

Hochstein and McGurk also welcomed recent agreements between the Government of Iraq and the Kurdistan Regional Government regarding monthly budget allocations, and emphasized the urgency of reopening the Iraq-Turkiye Pipeline as soon as possible.

On regional matters, McGurk pledged full U.S. support to help finally resolve outstanding maritime boundary issues with Kuwait, particularly in relation to UNSCR 833. Sudani welcomed this support, and reaffirmed Iraq's longstanding and clear policy recognizing Kuwait's sovereignty and territorial integrity, all prior bilateral agreements between the two friendly countries, and adherence to international law, including UN Security Council Resolutions.

(Source: The White House)

By John Lee.

During a meeting with a delegation from General Electric Energy, Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil expressed the government's commitment to supporting fast-track energy solutions for harnessing associated gas and converting it into useful energy. This collaboration with reputable international companies is part of the ministry's initiatives.

The meeting, attended by Mr. Madhat Al-Marabi, Executive Director of Mobile Energy Units at General Electric Energy for Europe, the Middle East, and Africa, emphasized the strategic partnership between the Ministry of Oil and General Electric. They praised the government's role in overseeing projects executed by the company in Iraq's energy sector, particularly in Basra, Maysan, and Thi Qar.

Discussions also revolved around General Electric's technical presentation on utilizing flared associated gas to generate electricity, employing jet engine turbine technology. The meeting proposed the possibility of signing a framework agreement during the COP28 climate conference.

The meeting was attended by Mr. Azat Saber, the Ministry's Deputy for Gas Affairs, and a Deputy Director-General from the Department of Studies, Planning, and Monitoring.

(Source: Ministry of Oil)

By Noor Kareem, for the Foreign Policy Research Institute (FPRI). Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Empowering Iraq: The $27 Billion Deal for Iraq's Energy Sufficiency

This past July, Iraq and France's TotalEnergies finalized the Gas Growth Integrated Project, a $27 billion energy deal aimed at Iraq's natural resources and improving the country's electricity supply.

Despite Iraq's natural wealth, decades of conflict and corruption have limited the country's infrastructure, prompting over-reliance on Iran for energy provisions. While previous Iraqi governments have struggled to attract foreign investments, Iraq's complex political system has proven resistant to crises, and the nation's current state of relative peace has catalyzed a shift.

As regional reconciliation efforts persist, Iraq stands at the center, as the nation undergoes a pivotal phase of transition and complex reconstruction efforts. However, the path to energy sufficiency remains a considerable challenge for Iraq even with regional aid.

Without domestic reforms to address the underlying causes of the energy crisis, Iraq's journey towards achieving energy self-sufficiency is still a considerable distance away.

Click here to read the full article.

By John Lee.

The third session of the Iraqi-Armenian Joint Committee for Economic, Trade, Scientific, and Technical Cooperation concluded on Wednesday, September 13, 2023. Iraq's Minister of Agriculture, Dr. Abbas Jabr Al-Maliki, led the Iraqi delegation, while Armenia was represented by the Minister of Economy, Fahan Kevorkian.

During the closing ceremony, both sides signed the minutes of the third session, which included recommendations spanning economic, trade, scientific, agricultural, and technical sectors. The document will be submitted to the Iraqi Cabinet for approval.

Minister Al-Maliki expressed gratitude to all contributors and encouraged Armenian investors and companies to participate in Iraqi exhibitions, particularly the Baghdad International Fair and the Agricultural Exhibition hosted annually by the Ministry of Agriculture. He hoped for increased collaboration across various fields.

Minister Kevorkian, in his speech, thanked the Iraqi side for their warm reception and highlighted the enticing factors of the Iraqi market, inviting Armenian companies to engage in investment projects that serve the interests of both friendly nations.

The two sides emphasized the importance of creating a new reality to enhance bilateral cooperation through three main axes:

1. Political Dialogue: Strengthening bilateral relations through diplomatic channels, encouraging and facilitating reciprocal official visits to serve both nations' interests on the international stage.
2. Economic and Trade Cooperation: Exploring avenues for economic and trade collaboration between Iraq and Armenia in various sectors, including commerce, agriculture, healthcare, transportation, oil, electricity, finance, construction, municipalities, industry, minerals, the National Investment Authority, water resources, and the private sector. Both sides recognized agriculture as an integral part of the national economy, contributing significantly to the well-being, security, and prosperity of both populations.
3. Scientific, Cultural, and Artistic Collaboration: Promoting scientific, cultural, and artistic cooperation in education, higher education, culture, youth and sports, tourism and antiquities, communications, sciences, and technology.

The committee meetings took place in Baghdad over two days, with the participation of representatives from both friendly nations' ministries.

(Source: Ministry of Agriculture)

By John Lee.

On Wednesday, Oil Minister Hayan Abdul Ghani received a delegation from the French company TotalEnergies.

The delegation included Mr. Laurent Vivier, the Regional Director for the Middle East and North Africa; Mr. Julien Pouget, the Middle East Director for Exploration and Renewable Energy; and Ms. Dunia Al-Jalbi, the Director of TotalEnergies' Iraq branch.

During the meeting, they discussed the prospects of mutual cooperation in the oil and energy sector, as well as TotalEnergies' plans and programs for implementing recent contracts with national oil companies. These contracts involve gas investment, field development, sea water transportation and processing, and a solar energy project for electricity generation.

(Source: Ministry of Oil)

By John Lee.

Iraqi Prime Minister Mohammed Shiaa Al-Sudani met with Peter Gibson, the CEO of American energy company Steller Energy on Wednesday.

They discussed the company's electricity projects and the government's commitment to expanding combined-cycle power projects, a key priority in their service and development program.

Prime Minister Al-Sudani emphasized the government's approach of facilitating major companies operating in the electricity and energy sector, recognizing its vital role in supporting various economic and service sectors.

Peter Gibson reaffirmed Steller Energy's dedication to fulfilling its obligations in Iraq and enhancing production while improving transmission and distribution networks to meet the growing demand for electricity.

Stellar Energy has been involved in electricity projects in Iraq - more here.

(Source: Media Office of the Prime Minister)

By John Lee.

In a meeting on Wednesday, Iraq's Minister of Electricity, Engineer Ziad Ali Fadel, met with the CEO of "Hitachi Linxon International" (sic) and accompanying delegation to discuss the synchronization of various projects completed by the Ministry in multiple provinces through their collaborative partnership.

Minister Fadel emphasized the importance of collaborations and agreements with reputable companies within the framework of mutual cooperation. He highlighted successful experiences with Hitachi in completing several secondary and transformer stations, including stations like Al-Adala, Al-Rabea, Al-Turath, Al-Hay, New Karbala, Al-Hussainiya, Bub Al-Sham, Al-Diwaniyah, and the Kout Center. Additionally, he mentioned the expansion of the fifth circuit at the North Baghdad station to 400 kV.

The Minister recommended that the Undersecretary for Transport and Distribution Affairs, Engineer Nizar Qahtan Al-Tamimi, hold a meeting with the company delegation to discuss the inclusion of a loan for the rehabilitation and expansion of the 400 kV extra-high-voltage transformation stations in ancient Babylon, South Baghdad, Diyala, and Wasit.

Al-Tamimi highlighted the importance of continuous and swift meetings to address pressing needs.

Linxon, headquartered in Switzerland, is a joint venture company set up in 2018 by SNC-Lavalin and ABB to deliver turnkey electrical AC substation projects. Hitachi subsequently acquired an 80.1-percent stake in ABB's Power Grids business, and Linxon now describes itself as, "combin[ing] SNC-Lavalin's project management expertise and Hitachi Energy's industry-leading technological knowledge."

(Source: Ministry of Electricity)

By John Lee.

Ministry's Deputy for Transport and Distribution Meets Shanghai Corporation, Highlights Successful Collaboration and Government Programs

The Deputy Minister for Transport and Distribution, Nizar Qahtan Al-Tamimi, representating Minister of Electricity Ziad Ali Fadel, led a meeting this week with Shanghai Electric.

The meeting aimed to further strengthen strategic partnerships, aligning with government programs and plans to bolster the electricity sector.

Al-Tamimi emphasized the government's and ministry's support for collaborations with established manufacturing companies. He highlighted that the partnership with Shanghai is not new, with past successful and significant projects driven by mutual interests.

Anticipating new projects, Al-Tamimi mentioned forthcoming initiatives like the installation of the combined cycle turbine at the Mansouriyah station, maintenance of Hartha station units, and the comprehensive expansion of Wasit thermal station.

Shanghai's Executive Director expressed pride in the ministry's trust in their projects. He noted that the Chinese government places significant importance on Iraq and the Ministry of Electricity through the Belt and Road Initiative. Collaborating with Sanio Shore, they are working to secure funding for new steps in Iraq's electricity sector. Alongside station implementation, they aim to engage in transport and the training of Iraqi staff, integrating modern technologies and renewable energy efforts.

Al-Tamimi recommended providing technical studies and maps for network development. He mentioned an upcoming conference where the government will announce available investment opportunities, urging competitive participation. He underscored the necessity of securing financing for projects aimed at advancing the electricity sector.

(Source: Ministry of Electricity)