UAE, Turkmenistan Deals to Enhance Iraq's Energy Supply After Iran Halts Gas

UAE, Turkmenistan Deals to Enhance Iraq's Energy Supply After Iran Halts Gas

According to a statement by Ahmed Mousa, spokesperson for Iraq’s Ministry of Electricity, Iranian gas supplies to Iraq remain largely halted, with only limited quantities being provided for operating power plants in the Middle Euphrates and Baghdad, as of Friday.

He added that Iran's resumption date for full gas supplies is still unknown. However, an agreement with a UAE company to operate Kirkuk power plants is nearing completion, The Caspian Post reports citing foreign media.

In an interview with Shafaq News, Mousa said that “the recent visit by Prime Minister Mohammad Shia al-Sudani and Minister of Electricity Ziad Ali Fadhil to Iran resulted in the provision of eight million cubic meters of gas to operate power plants in the Middle Euphrates and Baghdad,” noting that the Basmaya power plant in Baghdad has also been activated to increase the power supply to the capital.

UAE Company Deal

Mousa mentioned that” the Iraqi Cabinet approved a contract with UAE-based Hilal Company, operator of the Khor Mor gas field in Jamjamal, Kurdistan Region, to produce 100 million cubic feet per day. This supply will aid in operating Kirkuk's gas power plants, Al-Dibs, and Mullah Abdullah, generating 400 megawatts. This move is expected to stabilize Kirkuk's electricity production.”

He confirmed that the Ministry of Electricity has finalized the contract terms and will soon sign the agreement with Hilal Company to supply gas to Kirkuk’s power plants through a pipeline network. The Khor Mor gas field is linked with Kirkuk via pipelines, facilitating swift gas supply.

Turkmenistan Gas Contract

Concerning the Turkmenistani gas contract, Mousa stated that “the Ministry of Electricity is addressing technical matters after transferring the necessary funds to the Turkmenistani side through the Trade Bank of Iraq (TBI).”

The contract entails supplying Iraq with 20 million cubic meters of gas for operating power plants, with payments based on supply volumes, which will require time.

Kirkuk Power Station

In August 2024, Prime Minister al-Sudani inaugurated a new power station in Kirkuk with a capacity of 320 megawatts. The al-Dibs gas power station, one of Iraq’s oldest stalled projects, dates back to 2004 but was revived in late 2022.

The project consists of two generating units and can operate on three fuel types. Initially contracted with Russia’s Power Machines in 2000, the project was halted amicably in 2011 due to a lack of agreement with the Russian company.

Work resumed under al-Sudani's government in 2022, with a new company contracted. Specialized companies began work in 2023, and the two generating units came online with a 320-megawatt capacity, enhancing the national grid’s stability.

Kirkuk province also has other power stations like Mullah Abdullah with a 120-megawatt capacity, Taza with 292 megawatts, and New Kirkuk in Taza.

Iranian Production

In January, the Minister of Electricity announced the reintroduction of 625 megawatts of Iranian power to Iraq and described discussions on importing Turkmenistani gas as “positive.”

Iraq significantly relies on Iranian gas for approximately 60% of its gas power plants, with the rest dependent on modest local production. The Ministry of Electricity signed a five-year gas supply contract with Iran in March 2024 for 50 million cubic meters per day, with quantities varying based on system needs.

Khor Mor Field

The Khor Mor gas field, located in Jamjamal district, Al-Sulaymaniyah province, is rich in natural resources. The field covers approximately 135 square kilometers and holds 17 trillion cubic feet of gas reserves.

UAE companies Dana Gas and Hilal have been exploiting the field for 17 years under an exclusive agreement with the Kurdistan Regional Government (KRG), granting them rights to evaluate, develop, produce, and market oil and gas from Khor Mor and Jamjamal fields in the Region.

Under this agreement, the UAE firms, based in Sharjah, launched the Kurdistan Gas Project to supply gas to power stations in the Region. Gas production from Khor Mor is piped through a 180-kilometer pipeline to power stations in Jamjamal, Bazyan, and Erbil, collectively generating over 2,000 megawatts.

Gas production at these facilities began in October 2008, in a record time of 15 months from project commencement, according to Dana Gas's website.

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According to a statement by Ahmed Mousa, spokesperson for Iraq’s Ministry of Electricity, Iranian gas supplies to Iraq remain largely halted, with only limited quantities being provided for operating power plants in the Middle Euphrates and Baghdad, as of Friday.