Baghdad-KRG Talks Raise Prospect Of Gas Development Deal

24 Apr 2020 Issue: 63 / 17 By: Jamie Ingram

Initial talks have been held between Baghdad and Erbil for development of gas fields in the Kurdistan Region of Iraq to supply federal provinces. Politics has long held back what could prove the simplest solution to easing Iraq’s gas shortages.

Representatives from the Kurdistan Regional Government (KRG) and Iraq’s federal authorities have held initial discussions on the joint development of gas fields in the semi-autonomous region. It is early days, and given the current price environment near-term progress looks unlikely, but this could pave the way towards unlocking the Kurdistan region’s under-developed gas reserves and easing Iraq’s electricity shortages.

Following the 19 April talks, Iraq oil minister Thamir Ghadhban said they discussed investment in large, undeveloped gas fields, and that technical teams will “study the proposal we made regarding investing in gas for generating electricity in power stations across Iraq.” Electricity Minister Luay al-Khatteeb subsequently posted on Twitter that discussions were held over “investing in gas in the region for local consumption and developing the electricity connection.” (CONTINUED - 1046 WORDS)