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By John Lee.

The Karbala Oil Refinery, Iraq's first oil refinery to operate with modern technologies, has been opened by Prime Minister Mohammed S. Al-Sudani.

Built by Korean company Hyundai, the refinery has a capacity of 140,000 barrels per day and meets the latest environmental-friendly European standards.

It includes a power plant with a capacity of 200 MW (with four units of 50 MW each), provide the refinery with electricity, and supplying 60 MW to the Iraqi national grid.

The refinery is expected to save Iraq billions of dollars in oil imports.

The full text of the Prime Minister's statement is shown below:

Prime Minister Mr. Mohammed S. Al-Sudani, inaugurated the Karbala Oil Refinery, which operates with a capacity of 140,000bpd, following approved international standards. The Minister of Oil, the Governor of Karbala, and several officials and technical advisors attended the inauguration ceremony.

His Excellency conducted a field tour of the refinery departments and was briefed on the production stages and future development plans.

The Karbala Oil Refinery, implemented by the Korean company Hyundai, is one of Iraq's strategic projects. It is the first oil refinery in Iraq to operate with modern technologies. Its products follow the latest environment-friendly European standards. The octane rating for the produced gasoline reaches 95, and the project adheres to Iraqi environmental law.

Karbala Oil Refinery includes 33 operational, service, and storage units with large production capacities. It also consists of integrated terminals, a station for pumping oil derivatives and petroleum products to external terminals, and a power plant with a capacity of 200 MW, with four units, each of which operates with a capacity of 50 MW to provide the refinery with electricity. It will supply 60 MW to the National Electricity Transmission Grid.

(Source: Media Office of the Prime Minister)

By John Lee.

Gas operations have begun at the Akkas gas field in Anbar governorate.

A statement from the Ministry of Oil said production of 60 million standard cubic feet per day (MMSCFD) is being used to produce 90-95 megawatts of electricity.

The State Company for Oil Projects (SCOP) built a 30-kilometer pipeline (pictured) to transport gas to the Akkas gas power station.

(Source: Ministry of Oil)

A Tale of Two Transitions : Iraq's Energy Sector and Macroeconomic Stability in a Climate-Constrained World (English)

This paper from the World Bank assesses the costs and benefits of Iraq's own energy transition from fossil fuel dependent power sector to one with a significantly higher share of renewables amid an accelerating global energy transition.

The paper quantifies the returns of Iraq's energy transition, its high exposure to the global energy transition due to the deep role of oil revenues in the provision of public finances, and the policy tradeoffs associated with moving towards a greener energy mix.

The analysis finds that all decarbonization pathways of the electricity sector bring additional growth and productivity gains compared to maintaining the status-quo, albeit at different levels of cost effectiveness.

However, all pathways (including existing GoI plans) are fiscally costly given the required upfront levels of capex and the subsidy.

This cost could prove to be fiscally steep in deep decarbonization scenarios especially if the transition is fully financed by the public budget.

Consequently, the success of the energy transition in Iraq will largely depend on the political context and on the ambition of a GoI-led reform process that can overcome any socio-political vested interest. It will also require popular understanding and support for the urgency of this transition.

Click here to download the full report.

(Source: World Bank)

By John Lee.

Iraq's Prime Minister has said Iraq will plant five million trees in an attempt to combat climate change and limit the damage caused by dust storms.

Addressing a climate conference in Basra, Mohammed Shia Al-Sudani added that the plan woule be accompanied by the launch of a "national guide for urban afforestation" for the first time in Iraq.

Other projects will include the construction of renewable energy power stations, the rehabilitation of closed sanitary landfill sites, desertification control projects, water-regulated irrigation techniques, and new water treatment facilities.

He added that one-third of Iraq's electricity needs should be met from renewable sources by 2030.

(Source: Media Office of the Prime Minister)

US Allows Iraq to Release $500 Million in Iran's Blocked Assets

The United States has allowed Iraq to release the Iranian blocked assets worth $500 million due to sanctions relief, an Iranian official said.

The US has mandated Iraq to release $500 million in Iranian blocked assets, the secretary-general of Iran-Iraq Joint Chamber of Commerce announced on Friday.

Turning to Iran's blocked assets in neighboring Iraq, Hamid Hosseini said the Iraqi officials agreed to deposit Iran's electricity and gas funds into a banking account belonging to the National Iranian Gas Company (NIGC) and Iran's Power Generation, Transmission and Distribution Management Company (known as TAVANIR).

Iran's blocked assets have been left in a bank under the strict supervision of the US and are only allowed to be used for importing goods and commodities that are not subject to sanctions, he said, adding that $1 billion worth of goods and commodities was handed over to Iran last year, so that Iran's debt to Turkmenistan as a result of gas imports was paid through this procedure.

During a recent visit of Iraqi Foreign Minister Fuad Hussein to the US, Iraq was given permission to release the $500 million worth of Iranian assets blocked in the Iraqi banks.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

Jordan's Minister of Energy and Mineral Resources, Saleh Al-Kharabsheh, has reportedly confirmed that the Jordanian-Iraqi electrical interconnection project is expected to be completed by the end of 2024.

Jordan News quotes the minister as saying that all tenders for the project have been awarded by the Jordanian side, including the tender for the Al-Risha substation transformers, the transmission line tender, the civil works tender, and the switchgear station tender.

More here.

(Source: Jordan News)

Siemens Energy has been awarded long term service contracts for several powerplants, from the Ministry of Electricity of the republic of Iraq, to improve energy stability and availability, as well as provide training, skills, and employment opportunities for Iraqis.

These contracts represent the first portion of prioritized projects under the Iraq Energy Agenda - Wave II agreement, which was signed in Berlin in January 2023 between Siemens Energy and the Ministry of Electricityof the republic of Iraq.

As part of the prioritized packages, Siemens Energy signed three long term service contracts, for five years each, for the Al Sadr, Kirkuk, and Al Rasheed power stations. This will provide maintenance and servicing to ensure the stability of these power plants which generate more than 1 gigawatts of electricity.

The contracts will also enable training and knowledge transfer to local employees of the Ministry of Electricity, as well as other local specialists, to be able to maintain the systems themselves and carry out minor repairs in the future. These contracts are envisioned to enable job opportunities for Iraqis over the next five years.

On March 7, 2023, Siemens Energy Middle East Managing Director, Dietmar Siersdorfer, signed the contract for the Kirkuk powerplant with the Director General for the north region production state company, Mr Walid Khalid, and for the Al Sadr and Al Rasheed powerplants, with the Director General for the middle region production state company, Mr Ali Ahmed. The signings were witnessed by Prime Minister of the republic of Iraq Mr Mohamed Shiaa Al Sudani, on the sidelines of a visit by Germany's Minister for Foreign Affairs Annalena Baerbock.

"Siemens Energy is here to support Iraq in ensuring that its people get much needed access to energy whilst decarbonizing the energy system, but quick implementation is necessary to deliver these benefits. Together, we will enable homes, schools, hospitals, and industries to function and flourish and facilitate the transition to cleaner and greener energy," said Dietmar Siersdorfer.

Siemens Energy along with the Ministries of Electricity and Oil of the republic of Iraq are collaborating to use flare gas to generate electricity and are working to determine the exact locations and quantities of available gas. The goal is to be able to announce a viable concept for significant CO2 reduction at the COP28 in Dubai later this year. The parties are also working together to explore the development of renewable energy capacity in Iraq.

(Source: Siemens Energy)

By John Lee.

Romania's Prime Minister, Nicolae-Ionel Ciucă, has met with representatives of Iraq's Mass Global Energy Rom, the company that purchased the Mintia Thermal Power Plant.

During the meeting, the investment plan worth over one billion euros, designed to turn the thermal power plant into the EU's largest and most efficient power production capacity by gas was presented.

According to a statement from the Romanian government, the most modern technologies will be used to enable production of at least 1,500 MW.

It adds that, "the components of the plant will be prepared for the transition to the new energy production technologies, based on hydrogen".

The first stage of the investment will be completed within 24 months, and the project will reach full maturity in 36 months.

(Source: Govt of Romania)

(Picture credit: Govt of Romania)

Iraq's Minister of Electricity, Ali Fadel, has stated that his country is currently in the process of finalizing a contract to purchase gas from Iran in the summer season.

In a recent interview with Iraqi News Agency, Fadel emphasized that Iraq needs 35,000 megawatts to ensure 24-hour electricity supply during the summer season. Currently, Iraq's electricity production is at 15,600 megawatts, and citizens have access to 18 hours of electricity per day.

Fadel also stated that the situation regarding electricity supply this coming summer will be different from previous years. The Iraqi Ministry of Electricity is ready to sign an agreement with Iran to purchase the required amount of gas for the summer season, which will add 7,000 megawatts of electricity to Iraq's supply.

However, the shortage of fuel is preventing an increase of 5,000 megawatts, although facilities are ready for the production of this amount of electricity.

The Minister also mentioned that Iraq's contracts with Siemens and General Electric will enter the implementation phase from March of this year. As a result, Siemens will produce 1,400 megawatts at the Beiji power plant and 600 megawatts at the Dhi Qar power plant in the first phase, while General Electric will also produce 3,000 megawatts of electricity.

Fadel added that the two companies are obligated to conduct the necessary studies to collect associated gas. With the contracts between Iraq and Siemens and General Electric entering the implementation phase, Iraq's electricity supply is set to receive a significant boost.

In addition, the purchase of gas from Iran will further increase Iraq's electricity supply and help the country meet its energy needs during the summer season.

(Source: Tasnim, under Creative Commons licence)