Iraq could export gas to Germany as part of closer energy ties


Tim Stickings
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Iraq could become a gas supplier to Germany under closer energy ties being sought by both countries.

German Chancellor Olaf Scholz said he discussed the possibility with Iraq’s Prime Minister Mohammed Shia Al Sudani at talks in Berlin on Friday.

It came as Iraq agreed a deal with German company Siemens Energy to upgrade the Iraqi power grid.

Mr Al Sudani said Iraq wants to make better use of its large gas reserves and potentially export them to Europe, while Germany is looking for new suppliers after Russia turned off the tap.

“We talked about possible gas deliveries to Germany and agreed to stay in close contact on this subject,” Mr Scholz said in Berlin.

Iraq wants to help meet global energy needs while also stimulating its domestic economy, said Mr Al Sudani, who added that gas deliveries to Europe could be made through Turkey.

He said German companies could help address the problem of gas flaring — the waste of resources that occurs when excess gas is burnt during oil production.

Iraq has the world’s 12th-largest proven gas reserves but is the second-worst offender in flaring, behind Russia, according to the International Energy Agency.

“We are striving for a better use of flared gas, and correspondingly we can use gas much better and more efficiently,” Mr Al Sudani said.

“We offered during today’s visit that German companies can invest in these areas and be present in Iraq.”

Iraq wants to make better use of excess gas flared during production. AFP
Iraq wants to make better use of excess gas flared during production. AFP

Mr Scholz also offered Germany’s help in diversifying Iraq’s economy away from fossil fuels and reducing its carbon footprint, including through the use of solar power and hydrogen.

“Iraq is already one of the countries most affected by the climate crisis, and the challenges will continue to grow in the coming years. We want to help,” Mr Scholz said.

To help the decarbonisation drive, the Siemens plan signed with the Iraqi electricity ministry aims to increase Iraq's power generation by 11 gigawatts.

The Siemens deal “is an immense contribution to a climate-friendly, sustainable and reliable energy production in Iraq,” said German Economy Minister Robert Habeck.

Germany last month started importing gas on the world market for the first time after hurriedly building terminals on its North Sea coast.

It came after Russian exporter Gazprom shut down the Nord Stream 1 pipeline that had previously supplied Germany with much of its gas.

Germany has held talks with the UAE, Qatar, the US, Canada, Norway and other possible gas suppliers since Russia cut off exports.

Mr Scholz rejected the argument made by some activists that Germany’s shopping for gas has gone too far and will lead to an excess of supply.

He said Germany saw its role as a transit country that can supply neighbours such as Austria, the Czech Republic and Poland.

“That is something we will need to invest in much more and we are a long, long way away from excess capacity,” he said.

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Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return. 

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Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required. 

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