Waste of resources in Iraq: gas model

April 23, 2017
Shatha Khalil *



Natural gas contributes to about a quarter of the energy consumed in the world it's cleaner and less fuel, is an important source of thermal, mechanical and electrical energy in transport, industry, electricity and housing.

Many Nations exploit and invest this energy correctly are part of its revenue on gas wealth like Russia, Qatar and Iran, as well as a raw material for petrochemical industries and for the production of pesticides and agricultural production materials and protein, so the gas is the most important alternative energy sources to oil, and lower cost fuels energy product, featuring natural gas that is lighter than the air by 40% and mounts for fading in the weather when the leak.

Iraq was ranked 11th among the world's natural gas-rich after all of Russia and Iran, Qatar, Saudi Arabia, UAE, America and Nigeria, Venezuela and Algeria, which reserves some 112 trillion cubic feet.

And the history of Iraq's gas industry, commercially in 1927, despite Iraq possessing enormous wealth of natural gas associated with crude oil production and free gas in terms of scale of confirmed and probable reserves, production of natural gas marketer doesn't fit with the total production of natural gas and doesn't fit with what Iraq possesses large reserves, as well as the reduced level of the gas industry in Iraq and low capacity to convert natural gas into gaseous products promote The value added of this industry and the impetus for other industries and sectors.

And didn't care about foreign oil companies invest associated gas to oil production in Iraq when oil was discovered at Baba gurgur, Kirkuk field in 1927, and since that time and the accompanying Iraqi gas wastes burned, in addition to the closure of many gas wells in some fields such as: kormor, wegmgmal, kashm.

Attention began using natural gas as limited in the late 1950s.

The Iraqi Government has worked in the 1960s to build an important gas projects in Basra included alngibih power plant and fertilizer plant in Abu money and paper factory at two rivers Omar and Shuaiba power plant.

The effective interest began in the 1970s, gas in Iraq, described this period gold, gas in Iraq both in the production side by national oil company or on the consumption side of the Ministry of industry and electricity, and building new projects continued until the early years of the 1980s despite the war with Iran.

And the national oil company in 1980s South gas project 1050 card giant mkomk (standard million cubic feet) per day and then North gas project
A national network has been created for gas stretching from the South to Baghdad and North network meets Center down to Kirkuk with provision for processing gas from two directions, and was subsequently project subsurface liquid gas in Kirkuk

The industrial side, power stations have been built Nasiriyah Al Hartha. Khor Zubair, Najaf-Hilla-fertilizer and petrochemical complexes. iron and steel-Khor Zubair and cement plants in Samawah and Najaf and leap and other projects for gas.

The 1980s also saw export of dry gas and gas liquids from Rumaila to Kuwait State and liquid gas export by alhodiat to neighboring countries Jordan and Syria and Turkey.


Production:

Producing natural gas in Iraq of two main regions in the southern region and Northern region, natural gas production has seen similar changes to changes in oil production because most of the quantities produced of natural gas is associated gas to oil. Most of the natural gas product not used due to lack of facilities, and in the 1980s has been built and run South gas and gas collectors North, leading to a high rate of investment of natural gas production from 11.4% in 1980 to 88.7% in 1998.

At the same time marketed natural gas production rose 1.3 billion cubic meters/year to 5.5 billion cubic meters between 1980 and 1998, however, 2002 saw natural gas production declined 2.36 billion cubic meters to marketer then continued but decreased to 1 billion cubic meters in 2004.

And natural gas investment ratio has fallen to its lowest level due to the suspension of gas treatment plants affected by events in Iraq since 2003, but she rose slightly due to rehabilitate some facilities and natural gas complexes.

Iraq argued about 1.1 billion cubic meters in 2009 and is the equivalent of 0.04% of the total natural gas marketer in the Arab world.


There are two natural gas processing and manufacturing in the first Iraq Kirkuk and Basra:


North gas company:

The General Treaty was established for northern gas industry based on the defunct Revolutionary Command Council resolution than slavery (1400) at 1/9/1980 and the regulation of the Ministry of oil of the stylus (101) (1976) and amendments according to article (7) of the companies Act No 22 of 1997 was developed North gas company (a public company) starting from 1/6/1998.

The company aims at processing the raw gas associated with crude oil production in Northern fields and converted to derivatives of the following products:

– Dry gas: clean and user friendly fuel used in power stations, cement plants and many industrial companies in Northern and central Iraq and used raw material in the fertilizer and petrochemical plants.

– Liquid gas: used fuel for domestic purposes for local consumption and export.

– Natural gas:-used fuel after improved or injected with crude oil to improve specifications.

– Sulphur: raw material used in a number of local industries and export surpluses outside Iraq.

The design capacity of the North gas company 15 million cubic meters/day of sour natural gas, and consists of two identical production pace in energy. The complex was completed in the mid-1980s, targeting production of approximately 8-11 million cubic meters per day of dry natural gas marketer, and 735 000 tonnes per year of propane, 448 tons of butane gas as well as 384 000 tonnes a year of natural gasoline and 528 tons per year of sulphur.

The complex contains eight natural gas compression plants and moved production plants to the gas through the pipeline with a length of about 250 km.


South gas company:

South gas company was founded in 1979, despite the growing importance of natural gas as an important source of energy, the gas sector has not received adequate attention as the size of the burnt gas (Investor) amounts reflect the large waste this wealth and return a large portion of it to slow the gas facilities maintenance operations in Basra, as gas processing complex displays and a large damage gas compression stations in events in 2003 leading to the deterioration of production capacity below one third of what it was in the contract.

Last, the number of stations in Basra gas sequestration, station 29 SOC provides nutritious gas at a rate of 292 million standard cubic feet per day.

Total design capacity of gas company 29.7 million cubic metres south towards daily. The company comprises three units head for natural gas liquids (NGL) and the first unit is located at the North Rumaila gas plant, fluid is pumped South to Khor-Zubair gas complex completing stages and separate components, and contains a gas plant at Khor Al Zubair NGL disarmament units two and three, as well as the fluid retail units to produce propane and butane NAFTA, the lab is processing natural gas production associated with the southern Rumaila field and other fields producing next to it.

The company also includes refrigerated warehouses for the storage of propane and butane gas storage tanks, as well as the company's port facilities within NAFTA to export those products located on the Khawr Abd Allah. And natural gas marketed the product from South gas company gas transmission and distribution network, as propane and butane mixture is pumped into a network of LPG and naphtha to pumping oil refineries in Basra.

The Basra gas company was established in 2010 to share South gas company by 51 percent and shell by 44% and Mitsubishi 5% project includes production unit gas card (600) standard cubic meters a day where funded wholly by foreign partner before.

And began to shell the southern gas at work on a number of projects to produce more dry gas available to generate electricity, thereby reducing the amount of power drawn from the grid in addition to extract more LPG where Iraq currently imports 1200 tons per day of liquefied petroleum gas in burn 4000 tons per day.

Given these developments, experts believe that gas projects are now firmly on the priorities of the Iraqi Government to take advantage of the huge gas wealth sits upon Iraq which are as important as oil wealth, according to experts in the industry a gas, that Iraq is capable of producing more than 6000 million cubic feet of associated gas, enough to cover domestic consumption and export, but not exceeding 1000 million standard cubic feet per day production and nearly 700 million cubic feet a day in Basra fields burned.

Iraq faces a real problem at the moment because of burning gas, which causes the accumulation of 20 million tons of carbon dioxide emissions, while Iraq is still importing cooking gas from abroad and unable to generate electricity from gas to such traditional alternatives to diesel.


Iraq daily burn 700 million cubic feet of gas.


Oil Ministry spokesman, Asim Jihad, a press release, that "what does Iraq of nerve gas goes to gas stations to generate electrical energy, since 2003 Iraq burn gas up to 700 million standard cubic feet per day but the number is decreasing, because of growing investments for gas producing companies, noting that" MEW decided to import gas stations without consulting the Ministry of oil. "

There is a project under study is entirely stopped the Arab gas project which will transport gas from fields in Anbar ekaas via Syria to the Turkish border and then to Europe, and all these projects now stopped but futural achievable, if so carefully thought out plans for cooperation to achieve common interests between around the world despite all difficulties and military violence in Iraq and the fall of the extremist organizations, however, land.

Economic losses in Iraq to 2016 by an analytical study of modern expert Moses oil and gas industry expert in Iraq.

More than 1.5 billion cubic feet of gas daily burn in southern Iraq 2016 and that means loss of dry gas 1200 million cubic feet, 7500 tons liquid gas natural gas every 650 tonnes this losses per day.
The total quantities of the burned gas for the period 2011-2015 to 2220 billion cubic feet.

When calculating the average gas price during this period b $7 per million British thermal units, which means a common unit of energy of approximately 1055 joules. And you know she's the amount of energy required to heat 1 pound (1 lb) of water one degree Fahrenheit.

The total losses of 15.5 billion dollars in funds, could be used to build schools, hospitals and housing units.

Daily losses, which means the loss of electricity and cooking gas, it indicates that the loss of 1200 million cubic feet of gas a day means loss of 6000 MW electricity.

The loss of 7500 tons of liquid gas means loss of 600 thousand gas cylinder for cooking every day.

As for the environmental damage to burn 1.5 billion cubic feet of gas today, leads to production of 44 million tons of CO2 a year, equivalent to the emissions of more than 7 million cars on the road.


The estimated annual losses of billions of dollars in Iraq, in addition to environmental pollution in Iraq confirmed reserves of gas, 112 trillion cubic feet of natural gas, according to the Financial Secretary in April 2017, Razak Alissa, occupied Iraq ranked 11th among the world's rich countries with natural gas after Russia and Iran, both Qatar and Saudi Arabia, UAE, America and Nigeria, Venezuela and Algeria, which reserves some 112 trillion cubic feet.

The total reserve amounts for associated gas 98.3 trillion cubic feet and represents 75% of the total natural gas reserve.


Either the total reserve of free gas is 32.7 trillion cubic feet and represents 25 percent of Iraq's reserves of gas, not including many areas of Kurdistan invested in recent years and hoped to advance arranged, if you count the recent developments, and when completed his explorations, especially in deeper layers, which stalled for decades because of the deteriorating security situation and the war against the ISIS, which is estimated to occupy then ranked fifth.


Iraq seeks to progress in the field of gas through his participation in the Summit of the gas exporting countries Forum III, held in Tehran, Iraq now shares the role of observer, and works to occupy the site of full member to contribute with the rest of the gas producing and exporting countries to develop this sector and benefit from it.

Note that the Forum States acquires 70% of world gas reserves and 45 percent of its production, and 85 percent of its trade and 40 percent of its supply lines, the accompanying natural gas accounted for by 2015 in Iraq to 50% of the quantities produced of 3000 million cubic feet per day.

And there are efforts to maximize his investment, and stop heartburn to protect the environment and make use of its resources to generate electricity and make use of it in the industrial and agricultural sectors, etc.. And already established «Basra gas company», which owns 51 percent of its shares in Iraq, while the remaining two have «shell and Mitsubishi».

Work in progress and not add new projects in each of the fields under development, so as to accommodate the expected increase in the production of associated gas as the expected increase in oil production.

This includes full gas and processed to produce dry gas, liquid gas, natural gas, sulfur, which will cater to the needs of increasingly domestic consumption, and surplus for export.

Gas extraction would help «ethane» develop petrochemical industries, which would make progress in a large number of associated industries.


As well as methane gas production base which is «no» product of fertilizer, and their possible reflection on the development of the agricultural sector, and many others.

There is a major effort to draw free gas «» all sites where there, and there are also up to speed in drawn in «Ford Fiesta», waiting for better security conditions in the «hard». And besides, there's hard work to extend the gas pipeline network and providing reservoirs and pumping stations required,
The escalating burning gas and wasting more than two thousand billion cubic feet of natural gas worth more than 15 billion dollars in a country that suffers from a lack of electricity, oil products and gas import billions of dollars annually.

Iraq comes in 10th place in the world in terms of proven reserves of associated natural gas and gas alone, according to the US energy report, where 70% of it in Basra in southern Iraq.


Iraqi gas reserve amounts are estimated at more than 112 trillion cubic feet, 2/3 ones available with oil reserves in Kirkuk and southern field Bin Omar, crazy, wehlfaia in Nasiriyah, walrmilh, West Qurna and Zubayr, while 20 percent of gas reserves in areas where oil fields, and are concentrated in the North, begmbor, wegmgmal, eBay, weagil, Baba gurgur, Qasim Omar, walmnsoret., and the hard field in Anbar.


It transpires that such reserves of gas in Iraq to be the second most important in the country's oil wealth after carbohydrate, so Iraq directly produced for local consumption first and second export across the Northwest ports where Turkey to join line (Nabucco) across the Iran-Europe gas pipeline.


Overview of Iraq's gas future 2020


Iraq gas investment acceleration depends on how serious cooperation between constitutional institutions, represented by the House of representatives and the Central Government and local governments. Thoughtful plans that contribute to the development of the gas production sector that takes gas plays an important role in supplying the Treasury cash reserve.

But it faces some obstacles to invest in Iraq: the security situation disorder negatively affects the stability of workers and their continued presence at work.

Iraq experiencing lower rates for nutritious gas gas North and South-South gas, energy is planned for production in the South gas company, for example, costs 450 mkomk/day, while nutritious quantity actually received 292 mkomk/day on average, so the planned nutrition deficit towards mkomk 158/day on average, which affects the amount of liquid gas daily product of 2500 tons/day to 956 tonnes/day any shortfall (1544) tonnes/day.

That deficit is caused by a severe crisis in the amount of liquid gas for daily consumption, that in time you burn large quantities of natural gas associated with oil.


And also gas constraints: frequent mechanical and electrical vacations, lack of spare parts to the required level, which reflects on the periodic maintenance operations and annual degradation because of outdated equipment and taking over its lifespan, necessitating hardware upgrades and equipment is inadequate and became them inefficient, inadequate allocation of funds for rehabilitation and development and expansion of gas installations, and constant power outages for businesses and lack enough generators to run the factory.

Which reduces the amount of production, poor coordination between the oil and gas sector in the Ministry of oil, the lack of attention to the constitutional institutions and gas wealth, lack of accountability around burning gas, need law against burning gas and encourage investment in building and developing the gas sector.
Wizards: they must work to speed up Iraq's gas investment and glamorize, legislation prevents burning gas and commits the Government to provide funds for the gas sector with capping timeline to reach the zero point of the burning gas.

Effective and binding mechanism for cooperation between the oil and gas sector in the Ministry of oil and track results from oil and Energy Committee, parliamentary and provincial councils that are exposed to damage from burning gas.

Special law for investment in the gas sector and opening up to the gas industry in the world.

We must establish a national gas company international gas industry standards, backed by the Federal Government, Parliament, local governments and State oil and gas companies and foreign oil companies operating in developing oil and gas fields in Iraq are invited to cooperate and work urgently no pause burning gas and accelerate the country's gas wealth investment and build a modern national gas industry and catch the golden age of gas in the world.


Iraqi Finance Minister, Abdel Razak Al-Essa (21 April. 2017) that the World Bank is ready to earmark $9 million to support investment of associated gas in Iraq. (The World Bank prepared to allocate $9 million to support investment of associated gas in Iraq

Alessa pointed to "the World Bank is ready to provide a grant worth nine million dollars to support projects and studies for the accompanying gas in Iraq."

Iraq issued the first batch of natural gas (c5 plus) in the amount of ten thousand cubic meters, and that of Khor Zubair oil in Basra, to enter this global gas market after decades entered the oil market.

According to Iraqi oil Ministry spokesman, Assem Jihad, the Ministry commended the joint efforts of national cadres in Basra gas company in cooperation with shell wemtsiobshi where Ministry aims across current and future plans to invest for optimal hydrocarbon wealth and increase financial revenues and maximize gas wealth along with crude oil.



The economic studies unit
Links Centre for research and strategic studies

Sources:

(1) analytical study of modern expert Moses oil and gas industry expert in Iraq.
(2) morning newspaper
(3) Mohamed on Zinni, natural gas, waste or abuse of national interest? Civilized dialogue, 2010
(4) the annual statistical report, OAPEC 2010, Kuwait, different pages



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