Iraq has contingency plans in case Iran gas imports halted: minister
Reuters
Published May 16, 2019 09:54AM ET
Iraq has contingency plans in case Iran gas imports halted: minister
By Ahmed Rasheed
BAGHDAD (Reuters) - Iraq has contingency plans for any stoppage of Iranian gas imports for its power grid but hopes no such disruption will take place, Oil Minister Thamer Ghadhban said on Thursday.
He also said a meeting of OPEC's ministerial monitoring committee in Saudi Arabia this weekend would assess member states' commitment to a deal reducing oil production and that oil prices and markets were now stable.
"It's still too early to predict what will be decided," Ghadhban told a news conference when asked whether the Organization of the Petroleum Exporting Countries and its oil-producer allies could extend the output cut or boost supplies.
The gathering on Sunday in Jeddah may issue a recommendation ahead of OPEC's policymaking meeting with its allies next month in Vienna.
Turkey has asked to buy more Iraqi crude, Ghadhban added, speaking in Baghdad a day after Iraqi Prime Minister Adel Abdul Mahdi traveled to Turkey to meet President Tayyip Erdogan.
The United States is ramping up sanctions pressure on Iraq's neighbor and ally Iran, especially over oil exports.
"Turkey has asked to increase its crude oil imports from Iraq and we have pledged to consider the Turkish request positively," Ghadhban said.
Iraq relies heavily on gas from Iran for its electricity supply, which is stretched during hot summer months.
A lack of electricity was one complaint by protesters in demonstrations that descended into violence in Iraq's oil hub of Basra last year.
Asked how Iraq would react if Iranian gas imports were halted, Ghadhban said: "We hope there will be no halt, but we have taken precautionary measures for such a situation."
The United States is urging Baghdad to sign energy deals with U.S. companies, including a share for General Electric (NYSE:GE) of a $14 billion power scheme that Washington says would help wean Iraq off Iranian energy.
Ghadhban said international oil companies were operating as normal. He added that oilfields in the south and north of the country were safe and secure amid increased tensions between Washington and Tehran.
The United States evacuated non-essential staff from its diplomatic missions in Iraq over unspecified threats from Iran on Wednesday.
Sources close to foreign oil companies denied reports they were also evacuating employees on Wednesday.
The Kerbala refinery in southern Iraq will start operating in 2022 with a production capacity of 150,000 barrels per day (bpd), Ghadhban said.
Iraq plans to build a refinery with a capacity of 150,000 bpd near the northern city of Mosul to refine heavy crude from the nearby Nejma and Qayyara oilfields, the minister said.
Get The News You Want
He was speaking on the sidelines of a signing ceremony for a $400 million investment contract with Iraq's Al-Barham Group Co.
Under the deal, facilities will be built near the Kirkuk refinery to produce 12,000 bpd of high-octane gasoline and 160 tonnes of liquefied petroleum gas per day.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.