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By John Lee.

The Deputy Prime Minister for Economic Affairs, Fuad Hussein, accompanied by the Ministers of Transport and Electricity, a number of Governors, Advisors to the Prime Minister and a number of general managers visited the China Railway Company earlier this week.

Among the projects discussed were the building of the Karbala-Najaf railway.

The Minister of Transport stressed the importance of the project and said that Iraq is ready to complete negotiations on the technical specifications.

(Source: Iraqi Ministry of Finance)

By John Lee.

Germany's Siemens and Egypt's Orascom Construction signed an agreement with Iraq’s Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern Iraq.

The plants will have a combined generation capacity of 1.6 gigawatts (GW) when completed and are a major step in Siemens’ roadmap for rebuilding Iraq's power sector that has already added more than 700 megawatts to Iraq’s grid.

Work at Baiji, which is about 250 km north of Baghdad, will begin once the contracts are approved by Iraq’s Council of Ministers and a financial agreement is reached with the Ministry of Finance. The projects are expected to be completed within 28 months after the financial closing.

The power plants in Baiji were severely damaged by Islamic State militants. Recovering the lost capacity from the plants will help Iraq power its biggest oil refinery located in the city, a concrete plant, and will provide electricity to thousands of homes in Salahuddin province and other areas.

Iraq’s Electricity Minister Luay al-Khateeb, Siemens AG’s Joe Kaeser (pictured) and Osama Bishai, the CEO of Orascom Construction, witnessed the signing of the agreement on the sidelines of the Iraq Energy Forum 2019 in Baghdad.

Siemens will supply four new SGT5-2000E gas turbines and will inspect and revamp six exiting ones. The company will also provide two 400kV and one 132kV substations, along with generators, auxiliaries, automation and control systems, and related electrical equipment.

Dietmar Siersdorfer, CEO Siemens Middle East and UAE, said

“Iraq’s economic transformation is picking up pace, and this project demonstrates Siemens’ commitment to help Iraq’s Ministry of Electricity provide efficient and reliable power to all its people. We are proud to begin this project to help Iraqis in liberated areas recover and prosper.”

Discussing the deal, Karim Amin, CEO of Power Generation at Siemens AG, said:

“The reconstruction of Baiji 1 and 2 power plants mark the second phase of our roadmap in Iraq and will be the biggest so far in terms of power generating capacity when both plants are completed.

"The rebuilding of Baiji will secure 1.6 gigawatts and will create hundreds of jobs, which is a further demonstration of Siemens’ commitment to support knowledge transfer to the Iraqi people.”

Siemens’ footprint has been expanding in Iraq and the company is now active at over 20 locations, from Basra to Erbil. Siemens also has some recent experience in Baiji.

Earlier this month, Siemens delivered power equipment to ensure constant electricity for a clinic being built in the city and will also donate Siemens medical equipment for the facility. Al-Tawheed Center is expected to open this year and will be able to treat 10,000 patients a year.

Siemens and Iraq’s Ministry of Electricity signed an implementation agreement to kick off the execution of the roadmap for rebuilding Iraq's power sector in April 2019. Within the implementation agreement, the two agreed on the award of contracts valued at approximately €700 million for Phase 1 of the Roadmap.

(Source: Siemens)

By John Lee.

Under the guidance of the Iraqi Prime Minister, H.E. Dr. Adel Abdul Mahdi, the patronage of the Iraqi Minister of Electricity, H.E. Dr. Luay al-Khatteeb and in continuation of their dedicated efforts to strengthen Iraq’s power sector, Mass Energy Group Holding (MGH) and GE Power signed a new agreement that will help establish Phase 3 of the Besmaya [Bismaya] Power Plant, taking the total capacity of the facility up to 4.5 gigawatts (GW).

Under the scope of the agreement, GE will supply MGH with four 9F gas turbines and four generators to equip Besmaya Phase 3. The project has already been approved by Iraq’s Council of Ministers and MGH will supply electricity from the new extension of the plant to the Iraqi Ministry of Electricity under a 20-year power purchase agreement (PPA).

The agreement was signed in the presence of H.E. Dr. Luay Al-Khatteeb and John Rice, Chairman of GE Gas Power by Ahmad Ismail, Chairman of MGH and Joseph Anis, President and CEO of GE’s Gas Power Systems and Power Services businesses in the Middle East, North Africa and South Asia.

H.E. Dr. Luay Al-Khatteeb said:

“As the first independent power project in Central Iraq, Besmaya set benchmarks in public-private sector partnerships and contributions to Iraq’s electricity network.

"It has not only shown that Iraq can be an attractive destination for private sector investments in the energy sector but more importantly, it has played a critical role in helping the government to increase supplies of reliable, efficient, and affordable power to meet the needs of our citizens. We look forward to continuing our collaboration with MGH and GE through the further expansion of Besmaya Power Plant.”

Besmaya Phase 3 is the largest new power plant by output to be added to Iraq’s national grid since 2014. The project is anticipated to bring another 1.5 GW of power online by 2021, with the first 500 megawatts (MW) scheduled to be added to the grid as early as next year. Up to 1,200 people are expected to be employed in the construction of Besmaya Phase 3.

Ahmad Ismail said:

“At Mass Energy Group Holding, our mission is to make investments in the interests of the public by being an active contributor to the construction and development of Iraq’s power sector. In GE, we have found a reliable partner that is not only committed to the same values but also able to provide industry-leading technology, as well as world-class execution and service expertise on the ground in Iraq.

“We are excited to start working on the next phase of Besmaya today and remain committed to partnering with the government and people of Iraq to keep addressing the country’s power generation needs in the future as well.”

The agreement builds on a proven track record of successful power generation projects executed in collaboration between MGH and GE in Iraq. Besmaya is already the largest power plant in Iraq in terms of output and among the largest across the Middle East and North Africa.

Phase 1 of Besmaya Power Plant is capable of generating up to 1.5 GW of power, while Phase 2 can already produce up to 1 GW and is expected to add up to another 500 MW as it starts combined cycle operations during the end of 2019 / early 2020. GE has provided eight 9F gas turbines and 4 steam turbines for the first two phases of Besmaya. Moreover, MGH and GE have earlier brought up to 4 GW of power online in the Kurdistan Region of Iraq through the Erbil, Duhuk, and Sulaymania projects.

Joseph Anis said:

“On behalf of GE, I would like to thank MGH and the Ministry of Electricity for their continued trust in us. GE has been honored to collaborate with various organizations to support the development of Iraq’s electricity sector for over 50 years.

"From being among the first to help rebuild power infrastructure in conflict-affected areas such as Diyala and Mosul, to providing equipment and services for Iraq’s first independent power plant, we have not just promised but continuously delivered on our commitment to help power progress for the people of Iraq.”

(Source: GE)

Iraq has signed a landmark deal with the Gulf Cooperation Council (GCC) for a power line to import 500 megawatts of electricity by 2020, local reports said on Sunday.

According to the Iraqi Electricity Ministry, the 300-kilometre line will run from Kuwait to Iraq’s southern port of Faw and be financed by the GCC.

Electricity Minister Lo’ai [Luay] Al-Khatteeb (pictured) signed the agreement with the head of the GCC Interconnection Authority, Ahmad Ibrahim, on the sidelines of an energy conference held in Baghdad.

“This is the first deal of its kind with the GCC,” explained Al-Khatteeb. Iraq is also in separate talks with neighbours Saudi Arabia, Jordan and Turkey to import electricity.

“This first step will pave the way to discuss further and higher capacity projects,” the minister added, “not only to supply Baghdad and northern Iraq but also as a pathway to other countries.”

(Source: Middle East Monitor)

By John Lee.

Iraq's Minister for Electricity has said Iraq is looking to finance a $3 billion upgrade of its power transmission and distribution network.

The National quotes Minister Luay Al Khateeb as saying:

“We do have a fast track plan for $3 billion to upgrade the distribution and transmission of which $2bn is for the transmission and $1bn for the distribution.

"These are required immediately to make the national grid capable of delivering 20 hours of electricity across Iraq but this is all subject to the approval of the council of representatives for budget.

"I’m open to credit lines for financial support to finance these projects, even these require approval of council of ministers when it comes to planning for the budgets and government loans.”

More here.

(Source: The National)

Gazprom Neft subsidiary Gazpromneft-Badra has begun shipping granulated sulphur from its Badra oilfield in Iraq — the unique gas infrastructure installed by the enterprise here having made it possible not just to diversify production, but also increase associated petroleum gas (APG) utilisation to 98 percent.

The pilot consignment, delivered by order of Iraqi client “Ard as-Sakhlya”, totalled 1,000 tonnes and was shipped from the field with the help of 40,000-tonne-capacity heavy-goods vehicles (HGVs) over the course of one week. Gazpromneft-Badra is now preparing to ship its next consignment, of more than 3,000 tonnes of granulated sulphur, for another business in Iraq.

Gazpromneft-Badra has managed commercial production at this asset for a period of five years, during which time total cumulative production has reached 100 million barrels. The business has produced more than 2,1 million tonnes (15.6 million barrels) of liquid hydrocarbons since early 2019. Shipments of granulated sulphur from Badra commenced this year.

Production is undertaken through sulphur production and granulation plants with capacity of 110,000 and 136,000 tonnes per year, respectively, both of which form part of the 1.6-billion cubic metres per year capacity gas plant at the Badra field.

The technological process of producing granulated-sulphur production is automated throughout all key stages, from intake of raw materials to packaging of finished products. Gazpromneft-Badra has, already, produced more than 72,000 tonnes of sulphur (now in storage), which is expected to be shipped to Iraqi customers as orders are received.

Vadim Yakovlev, First Deputy CEO of Gazprom Neft, commented:

"We have, in Badra, created a modern industrial complex, unique in the variety of its output, producing not only oil and gas, but also granulated sulphur and electricity.

"Cutting-edge technological solutions have allowed us to monetise all hydrocarbons produced, as well as ensuring optimum environmental friendliness on this project, increasing APG utilisation to more than 98 percent."

(Source: Gazprom Neft)

By John Lee.

Iraq's Cabinet of Ministers has approved a loan agreement between the Federal Ministry of Finance, Standard Chartered Bank and the German Deutsche Bank for the purpose of financing the construction of 13 secondary substations (132) kV, and the supply of 35 high voltage transformers with the German company, Siemens, for the Ministry of Electricity.

The Cabinet also approved the recommendation of the Ministerial Council on Energy to expand Bismayah power plant.

(Source: Government of Iraq)

Government of Iraq contributes $33m for stabilization activities in historic agreement

The Government of Iraq has today signed an historic agreement with the United Nations Development Program (UNDP), committing USD 33 million for stabilization activities across the country.

Administered through UNDP’s Funding Facility for Stabilization (FFS), the contribution will be used to rehabilitate essential infrastructure and services like water, electricity, healthcare, housing and education in key areas of Ninewa, Anbar, Salah Al-Din, Diyala, and Kirkuk.

It places the Government of Iraq as one of UNDP’s top 10 donors across its stabilization portfolio, and signifies the government’s trust and confidence in its partnership with UNDP.

“We’re extremely grateful for this contribution, which represents the Government of Iraq’s unwavering commitment to stabilizing Iraq and encouraging the safe and dignified return of communities who fled the atrocities of ISIL,” says UNDP’s Resident Representative in Iraq, Ms. Zena Ali Ahmad.

“The Government of Iraq has been a strong partner and leader within UNDP’s stabilization efforts. Without their support, we wouldn’t have been able to complete more than 2,000 stabilization projects benefitting more than 8 million Iraqis. We look forward to bolstering our partnership with this new agreement,” adds Ms. Ali Ahmad.

The Secretary General of the Council of Ministers, His Excellency Mr. Hamid Al-Ghizi said: “Through this agreement, the Iraqi government seeks to implement projects in various affected geographic areas, while focusing on those areas that have experienced the most damage.

“The agreement will mostly focus on infrastructure and water, electricity, health and other projects, as our  provinces still need more infrastructure and support for basic services. The agreement also reaffirms Iraq's commitment to the strategic partnership with the United Nations Development Programme to restoring stability in the liberated areas, enabling displaced communities to return, and building and rehabilitating the infrastructure in the provinces that have been affected by the tragic circumstances that have passed through the country,” added His Excellency Mr. Al-Ghizi.

(Source: UNDP)

By John Lee.

The Basrah Gas Company (BGC) and Shamara Holding have reportedly signed a contract under which Shamara will supply electricity to the Basra Natural Gas plant.

According to The National, the contract will enable the plant to process by-product gas that would other wise be flared from the Rumaila, Zubair and West Qurna-1 oilfields for use by Iraq power stations.

The Basra NGL facility will be built in Ar-Ratawi area in west of Basra and is scheduled to complete at the end of 2020.

More here.

(Source: The National)

By John Lee.

Iraq's Oil Ministry has confirmed that the Al-Sumoud refinery in Baiji is operating at capacity, following a fire in the area.

The director general of the North Refineries Company (NRC), Qassem Abdul Rahman, said the fire was near the refinery but not in it.

He pointed out that:

"The fire that broke out in the vicinity of the Sumoud refinery in Baiji because of the fall of one of the transmission lines of electricity on abandoned agricultural land near the refinery and led to the movement of wind, set fire to dry grass ... The fire was outside the refinery's perimeter and did not affect its production."

(Source: Ministry of Oil)

(Picture: Baiji refinery)