Custom Search

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Deep Data: GCC Electricity and Iraq's Reliance on Iran

In connection with the recent Arab summit in Jeddah, Iraq and Saudi Arabia are forging ahead with efforts to connect their electricity grids.

The plan revolves around a new power line between the two neighbors with a capacity of 1 gigawatt (GW). Separately, Iraq and the Gulf Interconnection Authority (GCCIA) are advancing a scheme to power southern Iraq.

While Iraq has long been under pressure from the US and some Arab states to reduce reliance on energy imports from Iran, informed sources in Baghdad characterize the shifts underway as a win-win for all sides-pointing to burgeoning domestic demand in Iran, and the possibilities offered by a new regional electricity market.

The full report can be viewed here (registration required).

By Al Monitor staff. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq diversifies, expands sources of energy and electricity

Iraq is looking to Arab partners to help expand energy production and imports to meet summer demand.

Click here to read the full article.

By John Lee.

France's TotalEnergies has re-affirmed its commitment to energy projects in Iraq.

Following a meeting in Paris with Iraq's Minister of Oil, Ihsan Abdul-Jabbar Ismail, the Chairman and CEO of TotalEnergies, Patrick Pouyanne, said that Iraq is one of the most promising countries in attracting global investment for energy projects.

He added that TotalEnergies is ,"committed to partnering with the Iraqi government for its keenness to deal with us transparently, and to achieve the principles of mutual trust in a way that serves the common interests."

Last year, Iraq and TotalEnergies agreed a series of high-value investments in Iraq, including:

• The construction of a new gas gathering network and treatment units to supply the local power stations, with TotalEnergies also bringing its expertise to optimize the oil and gas production of the Ratawi field, by building and operating new capacities.
• The construction of a large-scale seawater treatment unit to increase water injection capacities in southern Iraq fields without increasing water withdrawals as the country is currently facing a water-stress situation. This water injection is required to maintain pressure in several fields and as such will help optimizing the production of the natural resources in the Basra region.
• The construction and operation of a photovoltaic power plant with a capacity of 1 GWp to supply electricity to the grid in the Basra region.

(Source: Ministry of Oil)

By John Lee.

The United Kingdom and Japan have been chosen to co-chair the Iraq Economic Contact Group (IECG), which met earlier this week.

British Ambassador, Mark Bryson-Richardson, commented:

"Economic reform and diversification are key to Iraq's prosperity.

"Delighted the UK is now co-chair of the Iraq Economic Contact Group, along with Japan.

"Its job is to encourage and support reform, investment and green transition in Iraq and help develop a thriving private sector."

Statement of the Iraq Economic Contact Group of the G7, European Union and World Bank:

"G7 countries, the European Union, World Bank, and the IMF met yesterday to launch the JP-UK co-chairship of the Iraq Economic Contact Group (IECG). Economic diversification and resilience remain critical to Iraq's future prosperity - doing so will provide basic services for all, economic opportunities, including for women and youth, inclusive growth and greater stability for the Iraqi society. The IECG continue to stand ready to support the Iraqi Government in delivering this important agenda for the Iraqi people. 

"The IECG encourages the Government of Iraq to revive its economic reform agenda, using increased oil revenues to invest in Iraq's long-term future -specifically, improved infrastructure, water and electricity provision, human development, and a green transition. Climate considerations should be integrated into its investments and development plans to improve food, water and energy security. 

"Creating a thriving private sector is critical; reforms should focus on improving competitiveness, both domestically and internationally and improving transparency and tackling corruption. A strong and independent financial sector and a regulatory and tax environment that encourages entrepreneurship must underpin Iraq's economy; this will allow Iraq's dynamic and young workforce to flourish and create the businesses of the future, as well as invite foreign investment. 

"A strong and targeted social safety net will ensure that most vulnerable groups receive adequate support; the IECG would encourage the Government of Iraq to take reforms on this forward. 

"In this context, IECG members will continue developing their support to inclusive economic reform, private sector development, and effective social programmes to the people facing immediate needs, and will strengthen the partnership with the Government of Iraq on its economic and social priorities."

"The Iraq Economic Contact Group (IECG) was launched by the G7, European Union, and the World Bank in 2020 to support the government in implementing much-needed economic reforms. 

"The group pledged to continue supporting economic reforms, social programs, and the agricultural sector in order to protect the most vulnerable groups in Iraqi society. It added that the reforms would assist the people by "strengthening food security in Iraq and increasing employment opportunities."

(Source: British Embassy)

By John Lee.

Croatia's Koncar Group has signed an agreement worth EUR 65 million ($69 million) with Iraq's Ministry of Electricity for the revitalization of Haditha hydroelectric power station.

Under the agreement, the company will carry out what it describes as  "a partial revitalization of generation units, replace part of the MV and HV equipment, the entire plant management systems, the excitation system and the electric protection system, and will upgrade mechanical subsystems and hydromechanical equipment."

The plant has capacity of 6x128 MVA.

(Source: Koncar)

FAO Iraq mobilizing efforts to prevent the extinction of reem gazelles in Southern Iraq

A delegation from the Food and Agriculture Organization of the United Nations (FAO) in Iraq visited last week Sawa Nature Reserve in Al Muthanna.

This came as a follow-up to the urgent and current situation where reem gazzelles are endangered due to starvation and thirst.

These gazelles have long existed in Iraq but they are nowadays threatened to extinct due to climate change and other challenges, mainly severe successive droughts, which are resulting in poor grazing areas. In the last months, 41% of Reem gazelles died where the numbers decreased from 148 to 87 heads in the reserve.

During this visit, FAO Iraq Representative Dr. Salah El-Hajj Hassan with a team of experts from FAO met with the local authorities in Al Muthanna Governorate along representatives from Ministries of Agriculture, Environment and University of Al Muthanna to discuss these issues. FAO urged to put an action plan for the immediate and long-term sustainable interventions.

FAO Iraq Representative, Dr. Salah El-Hajj Hassan says:

"FAO is committed to work closely with the local authorities, Ministries of Agriculture and Environment to prevent the extinction of animals in Sawa Nature Reserve and to protect the rich biological diversity in Iraq. We will put in action short and long term sustainable plan."

The key actions to be implemented are:

• Use the grant support from H.E president of Iraq to have long lasting sustainable solutions.
• FAO to provide urgently 15 tons of concentrate feeds and 5 tons catalytic feed supplements (Sugar molasses and multinutrient feed blocks).
• Al Muthanna Electricity Department and the local government to provide electricity to the protected site.
• Rehabilitate the reserve's fence and set a solar energy model with FAO's support for irrigation facilities.
• Introduce the cultivation of drought and salt tolerant fodder crops (Alfalfa and Sudanese Sorghum) and shrubs (Atriplex Nummularia), FAO will provide seeds and technical expertise,
• Train employees in the reserve as well as neighboring farmers in collaboration with the colleges of Agriculture and Veterinary Medicine at the University of Al-Muthanna.
• Incorporate an area of the reserve and its neighboring villages including protected dromedary areas with FAO to be planted with fodder seeds and train the farmers.
• Close follow-up to implement these actions as soon as possible.

(Source: UN)

From the Kurdistan Regional Government:

Like citizens across the Kurdistan, I have been deeply troubled by the repeated terror attacks on our people and public infrastructure in recent months. The cowards behind the attacks have resorted to terror tactics because they have lost the court of public opinion in the rest of the country.

Rather than focus on the future, and economic integration to lift all of the country, lawless groups have resorted to rocket attacks on our villages and civilians.

I have spoken by phone with key political partners in the Kurdistan Region and Iraq, and our friends abroad. During my call with Prime Minister Mustafa Kadhimi, I emphasized the need for joint Peshmerga and Iraqi security forces to fill any remaining vacuum in the disputed territories used by lawless groups to recklessly destabilize the whole of the country.

I explained to the Prime Minister that the attacks threaten the country's electricity provision and the investment climate for all the country, and I have urged him to take public, practical measures to rein in the groups.

I have also directed both Ministers of Peshmerga Affairs and Interior to take all measures necessary to protect critical public infrastructure and oil and gas installations. As part of the plan, we have agreed to reinforce the area with additional forces. More measures will be reviewed in the coming days.

Last night, I also spoke with White House Coordinator for the Middle East and North Africa Brett McGurk. Our American friends, and every investor must remain committed; we cannot give into fear. Over the next few days, I will urge our international friends and partners, and the UN Security Council to renew efforts with Erbil and Baghdad and explore ways for us both to protect against more terror attack.

The KRG deeply values and will defend and protect investments in its oil and gas sector and all public infrastructure. I have made it clear that an attack anywhere on Kurdistan is an attack on all of Kurdistan and its peoples.

In this moment of national concern, I urge our people to stay resolute. This is a blatant attack on our infrastructure, and part of a concerted effort to deter us from our strategic plans and reform agenda. Our resilience will not be shaken.

Masrour Barzani

Prime Minister of Kurdistan Regional Government

(Source: KRG)

On the 20th June, Sheikh Mohammed Alkhouzai, Iraqi Prime Ministerial candidate, attended meetings in London to discuss the current social pressures and political issues in Iraq.

Sheikh Mohammed met with the Hon Matthew Offord MP, the Chairman of the United Kingdom Parliament's All Party Parliamentary Group on the Republic of Iraq at the Palace of Westminster. The meeting was positive with both sides agreeing to the importance of unity in national politics. The discussions covered topics such as security, the future of Iraq's economy and the role of international actors in the future of Iraq.

Sheikh Mohammed said:

"Iraq faces some real struggles in the near future. Electricity blackouts, water shortages and rising unemployment all at a time of soaring summer heat is going to create significant stress within communities. Now is not the time for siding with division; now is the time for cooperation and working together to solve these nation-wide issues. There must be political leadership to confront these harsh realities"

At the end of the meeting both Mr Offord and Sheikh Mohammed confirmed their desire to work together in the future and to support Sheikh Al-Khuzai's program to solve crises in Iraq.

Sheikh Mohammed then met with Chairman of the Royal United Services Institute (RUSI), The Rt Hon Sir David Lidington. Sir David is a former foreign Minister and former Deputy Prime Minister. Given the nature of RUSI's work the discussion was focused on the security of Iraq and the potential for unrest in the forthcoming summer months.

Sheikh Mohammed spoke passionately about the importance of both the tribal and religious leaders of the country, army officers and members of the judiciary, whose leadership are critical in the forthcoming months in ensuring the unity of the nation. He also spoke about the importance of creating new economic opportunities to deliver new jobs for the young adults of Iraq.

The discussion also centred on the role of foreign actors and his name being nominated for prime minister. Both men agreed that while Iraq is not currently able to build its future alone, its future and the road to get there must be decided by Iraq and the Iraqi people. While Sheikh Mohammed welcomed foreign investment he also said that he would not allow foreign countries to determine the future of the nation.

The end of the meeting came as both Sir David and Sheikh Mohammed agreed to work towards the potential of creating a bridge between RUSI and the leading actors that help to make up Iraqi political society.

Speaking about the meetings Sheikh Mohammed said:

"It is clear that senior people within the political sphere of the United Kingdom want to see a bright future for Iraq and are willing to help the nation achieve it. But, they will not waste their time on a country that is trying to tear itself apart. Strong leadership and a unified Iraq, based on our shared ambitions from Zakho to Fao is how we will build a better Iraq."

(Source: Mohammed Alkhouzai)

By John Lee.

Saudi Arabia has approved a memorandum of understanding (MoU) with Iraq, under which Saudi Arabia would provide electricity to Iraq.

The agreement was approved at meeting of the Saudi cabinet (pictured) on Tuesday, chaired by King Salman bin Abdulaziz Al Saud.

According to the state-controlled Iraqi News Agency (INA), the routes of the new lines have already been decided,

INA quotes Iraqi Electricity Minister, Adel Karim, as saying that the link will be completed within two years.

(Sources: Saudi Press Agency, Iraqi News Agency, Shafaaq)

By John Lee.

The Iraqi Prime Minister has announced that the Ministry of Electricity is to be renamed the "Ministry of Electricity and Alternative Energy".

At a press conference in Baghdad, Mustafa al-Kadhimi (pictured) said it is unreasonable to build gas power stations when there is not enough gas available, so the new ministry will actively seek alternative power sources.

In the past, he said, power stations were built, "in an absurd manner, without planning and without knowledge."

He also referred to the country's electrical interconnection projects with the Gulf states, Saudi Arabia, Turkey, Jordan and Egypt, which will provide power until Iraq reaches self-sufficiency.

Addressing the annual shortage of electricity during the very hot summer season, he said that last year's production of 21,000 MW will not be achieved this year, due to the reduction in gas supply from Iran.

(Source: Govt of Iraq)