The long-delayed start of gas imports from Iran will help Iraq alleviate its crippling gas shortage and reduce its dependence on burning crude and fuel oil for power generation. Imports started on 21 June at 7mn m³/d (245mn cfd) and will be ramped up to 1.2bn cfd under a 2013 agreement. The gas will supply three power stations in Diyala and Baghdad provinces.
Startup had been delayed by security concerns along the border area. A second pipeline to supply commensurate volumes to Basra has been completed, but startup is being held up by payment issues. Iraq’s gas shortage is driven not be lack of resources, or even lack of production, but inadequate infrastructure to capture associated gas. More than 60% of gas produced is flared. The World Bank’s Global Gas Flaring Reduction Partnership (GGFR) says Iraq is the second biggest offender behind Russia. Iraq flared 1.71bn cfd last year according to GGFR, up 9.6% from 2015’s 1.56bn cfd. (CONTINUED - 198 WORDS)
