PM Al-Sudani orders contract with Emirati firm to procure 100 million cubic feet of gas

Shafaq News/ On Tuesday, Iraqi Prime Minister, Mohammed Shia Al-Sudani, directed the Ministry of Electricity to proceed with contracting the Emirati company "Crescent Petroleum" to supply 100 million standard cubic feet of gas to help operate the country’s power plants.

According to a statement from the PM’s media office, Al-Sudani chaired a meeting with representatives of the company, attended by the Ministers of Oil and Electricity, to discuss the government’s plans to advance gas investment in partnership with the private sector.

The statement added, “The Prime Minister also instructed the Ministry of Oil to expedite efforts to overcome any obstacles hindering Crescent Petroleum’s gas and oil investment in Khashm Al-Ahmar oil field in Diyala province, within a defined plan and timeline.”

In 2023, Iraq’s Oil Ministry activated three contracts with Crescent Petroleum to develop three oil and gas fields as part of the fifth licensing round. The agreements aim to extract 400 million standard cubic feet of gas daily from the Khashm Al-Ahmar, Gilabat, and Khor Mor fields.

The country relies on Iranian gas to fuel 60% of its gas-powered plants, while domestic production accounts for the remainder, which falls short of meeting electricity demand.

Efforts to diversify energy imports from regional countries, such as Saudi Arabia, Turkiye, Jordan, and Kuwait, have seen only limited progress.

Iraq's electricity crisis has persisted for decades, with chronic power outages forcing citizens and institutions to depend on private generators.