伊拉克能源概况2024 Country Analysis Brief Iraq

CountryAnalysisBrief:Iraq

LastUpdated:February14,2024

NextUpdate:February2025

IndependentStafistiesandAnalysis

U.S.EnergyInformation

Administration

U.S.DepartmentofEnergyWashington,DC20585

U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraqi

TheU.S.EnergyInformationAdministration(EIA),thestatisticalandanalyticalagencywithinthe

U.S.DepartmentofEnergy(DOE),preparedthisreport.Bylaw,ourdata,analyses,andforecastsareindependentofapprovalbyanyotherofficeroremployeeoftheU.S.Government.TheviewsinthisreportdonotrepresentthoseofDOEoranyotherfederalagencies.

February2024

U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraq

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Overview

Table1.Iraq’senergyoverview,2021

Crudeoilandother

Other

petroleumliquidsNaturalgasCoalNuclearHydrorenewablesTotal

Primaryenergyconsumption

(quads)2021a

1.3

0.7

--

--

0.1

2.1

Primaryenergyconsumption

(percentage)

62.1%

32.6%

--

--

5.3%

100.0%

Primaryenergyproduction(quads)2021a

8.8

0.4

--

--

<0.1

9.2

Primaryenergyproduction

(percentage)

95.2%

4.3%

--

--

0.5%

100.0%

Electricitygeneration

(terawatthours)b2022

130.8

--

--2.7

0.4

133.9

Electricitygeneration(percentage)

97.7%

--

--2.0%

0.3%

100.0%

Datasource:U.S.EnergyInformationAdministration,EnergyInstituteStatisticalReviewofWorldEnergyData

Note:Quads=quadrillionBritishthermalunits;--signifiesnotapplicable.

aHydropowerandsolararecombined,andhydropoweraccountsforthemajority.

bIncludesonlyFederalIraq.EstimatesnotyetpublishedbyU.S.EnergyInformationAdministration,InternationalEnergyStatistics.

•Iraq(FederalIraqandKurdistanRegionalGovernment)isthesecond-largestcrudeoilproducerinOPECafterSaudiArabiaandthesixth-largesttotalpetroleumliquidsproducerintheworld.1Itholdstheworld’sfifth-largestprovedcrudeoilreserves,at145billionbarrels,representing17%ofprovedreservesintheMiddleEastand8%ofglobalreserves(Figure1).2MostofIraq’smajorknownfields—allofwhicharelocatedonshore—areproducingorareindevelopment.3MostofIraq’scrudeoilislocatedinthesouthernBasraregion,theDiyalaregioneastofBaghdad,and

thenortheasternKirkukregion.4

•AfterholdingparliamentaryelectionsinOctober2021,FederalIraqtookayeartoforma

consensusgovernmentundertheleadershipofMohammedShiaal-Sudani.Thisgovernment

gridlockdelayedkeylegislation,thepassingofanannualbudget,andfinancingformajorenergyprojectsbythegovernmentandforeigninvestors.5Afternothavingabudgetfor2022,Iraq

approvedannualbudgetsfor2023,2024,and2025inJune2023thatincludedfundingforinfrastructureprojects.6

•CrudeoilexportrevenuesaccountforalargepartofIraq’seconomy.In2022,crudeoilexportrevenueaccountedforanestimated95%ofIraq’stotalgovernmentrevenues,accordingtotheInternationalMonetaryFund(IMF).7Iraq’snetoilrevenuesroseto$131billionin2022from

$92billion(2022dollars)in2021,drivenbyhigheroilpricesandincreasedproduction.8WeexpectthatthedecreaseinglobaloilpricesandlowercrudeoilproductioninIraqin2023

(followingtheOPEC+cutsandsupplydisruptionsinnorthernIraq)willsignificantlydecreaseIraq’soilexportrevenues.9

•Iraqconsumedanestimated2quadrillionBritishthermalunitsoftotalprimaryenergyin2021,makingitthefifth-largestenergyconsumerintheMiddleEastbehindIran,SaudiArabia,theUnitedArabEmirates,andQatar.10NaturalgasandoilaccountedforalmostallofIraq’stotal

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primaryenergyconsumption;hydropowerandsolarenergycontributedmarginally(Figure2).Iraqwillcontinuetomostlyuseoiltomeetenergydemanduntilitdevelopsmorenaturalgasprocessingcapacityandpipelineinfrastructure.

KurdistanRegionalGovernmentandFederalIraq

•FederalIraqreferstothepoliticalentitythatisgovernedbythecentralgovernmentofIraqinBaghdad.TheKurdistanRegionalGovernment(KRG),theofficialrulingbodyofthesemi-

autonomousregioninnorthernIraqthatispredominantlyKurdish,hasbeeninvolvedin

disputeswiththecentralgovernmentrelatedtosovereigntyforaboutthreedecades.

•KRGoilproductionfellafterreachingnearly470,000barrelsperday(b/d)in2019tolessthan440,000b/dby2022.11TheKRG’spaymentdelaystointernationaloilcompanies(IOCs)overthepastfewyears,alongwiththeregion’sexplorationfieldsthathavenotyieldedexpectedresultsdrovethesedeclines.Asaresult,IOCinvestmentovertimeinexplorationandfielddevelopmenthasdeclined.12

•Weexpectthat2023crudeoilproductionfromtheKRGwilldeclineonanannualbasisbecauseoftheIraq-to-Turkey(ITP)pipelineclosureattheendofMarch2023andthelimitedoutletstosellcrudeoilproductionlocallytorefiners(seetheEnergyTradesectionformoredetails).

AlthoughmostoftheproductioninnorthernIraqwasshutinorplacedintostorageafterthe

pipelinestoppedoperating,theKRGfieldsincreasedproductionfromnearly120,000b/dinApril2023toaround200,000b/dinAugust2023.Thiscrudeoiltravelsmostlytonorthernrefineries,althoughtheseoutletshavereachedtheircapacity.

•FederalIraq’s2023budgetstipulatesthattheKRGrelease400,000b/dofcrudeoiltoFederal

Iraqinreturnforaportionofthefederalbudget.However,theclosureofthepipelinefromtheKRGtoTurkeyinMarch2023hamperstheKRG’sabilitytoproduce400,000b/dbecauseofthelimitedoutletstosouthernIraq.TheKRGsentaround85,000b/dtoFederalIraqinAugust2023,upfrom35,000b/dinJuly.FederalIraqsendsthisvolumetotherefineryinErbilforprocessingandlocalconsumption.13FollowingtheIraq-to-Turkeypipelineclosure,theKRGhashadahardtimemakingaprofitandhasreceivedloansfromFederalIraqoverthepastseveralmonthsto

paycivilservantsalaries.14

•TheIOCsthatareproducingcrudeoilintheKRGregionhavetoselltheircrudeoilproduction

formuchlowerrevenuesthanbeforetheITPpipelineclosed.FederalIraq’snewbudgetdoes

notcompensatetheseproducerswiththerevenuestheypreviouslyreceivedfromtheir

contractswiththeKRG.IOCsarerequestingthattheybecompensatedbasedontheagreementwiththeKRG,andthelackofresolutionlikelywillaffectfutureinvestmentandtheabilityto

raiseproductionifandwhentheITPreopens.15

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Figure1.Topprovedworldoilreserves,2022

billionbarrels

350

éia)

Datasource:Oil&GasJoumal,December2022

Note:*ReservevolumesincludethosefromtheNeutralZone.

Figure2.Iraq'stotalprimaryenergyconsumption,sharebyfuel,2021

Datasource:U.S.EnergyInformationAdministration,InternationalEnergyStatistics

U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraq3

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U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraq

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PetroleumandOtherLiquids

•Iraq,oneofthemembersoftheOPEC+agreement,raiseditscrudeoiloutput(excluding

condensates)in2022bynearly400,000barrelsperday(b/d)fromanaverageoflessthan4.1millionin2020and2021tomorethan4.4millionb/d,aftertheOPEC+membersreversedthesignificantproductioncutsmadein2020.ThecentralgovernmentinBaghdadproducedabout4millionb/d,andtheKRGsuppliedlessthan440,000b/dfromthenorthernfieldsthatit

currentlyoperates.16Iraq(includingtheKRG)produced,onaverage,almost4.6millionb/doftotalpetroleumliquidsin2022(Figure3).17

•Iraq’scrudeoilproductionfellto4.3millionb/dinthefirsthalfof2023,andweexpectthatIraq’s2023crudeoilproductionwillbelowerthanin2022becauseoftheOPEC+productioncutsmadeinNovember2022andvoluntaryreductionsmadebyIraqin2023.18InJune2023,OPEC+agreedtoextendcrudeoilproductioncutsthrough2024,andIraq’sgovernment

announcedthatitwillcontinuevoluntaryproductioncutsthrough2024,whichwouldleaveIraq’sproductiontargetatabout4.2millionb/d.19

•WeestimatethatIraq’seffectivecrudeoilproductioncapacitywas4.4millionb/dasofmid-

2023,downfrom4.8millionb/datthebeginningof2023.TheadditionofanewrefineryandrestorationofsomeequipmentattheBasraexportterminalboostedproductioncapacityin

2023.However,theremovalofaround400,000b/dofexportcapacityinnorthernIraqmore

thanoffsetanyadditions.Exportinfrastructureatthesouthernoilterminalsisconstrained,andmidstreamprojectsareoftendelayedbecauseofinsufficientinvestmentandbureaucratic

hurdles.20

•Iraq’soilministryplanstoliftcrudeoilproductioncapacityto7millionb/dby2027andwill

targetseveralupstreamexpansionprojectsfromfieldsinsouthernIraqtobolsterthecountry’soutput(Table2).21SomeoftheseprojectsarelikelytobedelayedbecauseofIraq’spolitical

struggles,regulatorychallenges,delaysinrestoringandexpandingthesouthernexport

infrastructure,andtheinternationaloilcompanies’uncertaintyabouttheinvestmentclimate.

•Iraq’soilproductionrequiresmorewaterinjectiontomaintainitsreservoirpressuresandto

increaseoilproduction.TotalEnergiesintendstoinvestina7.5millionb/dseawaterconversionprojectaspartofitsenergyagreementwithIraqtobolsteroilproductionfrommaturefieldsinsouthernIraq.22IraqfinalizeditsagreementwithTotalEnergiesinJuly2023,andtheseawaterconversionprojectisslatedtocomeonlinein2027,assumingnofurtherprojectdelays.23

•Iraqconsumedabout900,000b/dofpetroleumandotherliquidsin2022.24DomesticrefineriesmeetmostofIraq’spetroleumproductneeds;however,Iraqimportssomepetroleumproducts,primarilygasolineanddiesel.25Iraqalsousescrudeoilandhighsulfurfueloilforelectricpowergeneration.26

•Iraq’stotaloperatingrefiningcapacityisabout1.2millionb/d.27TheIraqigovernmentplanstoreducepetroleumproductimportsbyrehabilitatingtherefiningsectorandbuildingnew

refineries,butthegovernmenthasstruggledinitseffortstoattracttheforeigninvestment

neededinthedownstreamsector.Iraq’srefineriesproducemoreheavyfueloilthanisneededdomesticallyandnotenoughgasolineanddieseltomeetdomesticdemand.

•Severalnewrefineriesareplanned,alongwithcapacityexpansionandupgradesatanumberofexistingrefineries,toalleviatedomesticproductshortages,reducegovernmentimportcostsforoilproducts,andeventuallyincreaseexportsofrefinedproducts.28Iraqbroughtonlinethe

140,000b/d-KarbalarefineryinApril2023,althoughtechnicalissuesmadetheplantinoperableforpartofthesummer.TheKarbalareachedfullcapacityinSeptember2023.29Iraqplansto

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commissiontworefineryprojectsin2024.TheSouthRefineriesCompanyisexpandingitsBasrarefineryby70,000b/d.However,anongoingfinancialdisputebetweenIraq’srefiningcompanyandthecontractorisdelayingtheproject.30Iraqalsoplanstorepairadamaged150,000b/d-crudedistillationunitattheBaijirefinerycomplexbytheendof2024.31Otherrefineryprojectsarestillintheplanningstages,althoughIraq’sregulatorychallengesandeconomicissuesare

hurdlesforpotentialinvestors.32

Table2.CrudeoilprojectsinIraq,2023

Fieldname

Operatoror

projectinvestor

Additional

capacity

(thousands

ofbarrels

perday)

Announcedstartdate

Notes

MissanCluster

(Bazergan,Fakka,andAbuGharb

fields)

China’s

CNOOC

100

November2022

CNOOCexpandedtheMissan

Cluster’scapacityto300,000b/dinNovember2022.33

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U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraq

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Majnoon

BasraOil

Company

200

End-2023

Shellexitedthefield2018.34

ownership

in

Zubair

ENI

50

End-2024

Anyfutureexpansionswill

requiremorewaterinjection35

Faihaacrudeoil

processingfacility

China’s

UnitedEnergy

Group

100

Secondhalf2024

LocatedontheborderwithIran.Plansincludeexpandingthe

Faihaafieldcapacityfrom50,000barrelsperday(b/d)to130,000b/d.Thecrudeoilprocessing

facilitycouldalsoprocessoilfromnearbyfields.36

Ratawi

TotalEnergies

130

2025

Fieldexpansionispartof

TotalEnergies’$27billiondeal

signedinSeptember2021withIraq.AgreementwasfinalizedinJuly2023.Plannedexpansionoffieldcapacityto210,000b/d.37

WestQurna-1

ExxonMobil

andBasraOil

Company

330

2028

Iraqawardedadrillingcontract

toservicesfirmSchlumberger.

Iraq’sdisputewithExxonMobil

overthecompany’sexitfromthefield’spartnershipandthe

uncertaintyofBasraOil

Company’sabilitytoinvestintheexpansionarelikelytodelaythisproject.38

FieldsintheDhi

Qarprovince

(Nasariya,Gharaf,andSubba)

DhiQarOil

Company

(DQOC)

310

2028

Iraqbegannegotiationswith

Chevronin2020toexploreanddevelopmorefieldsintheDhi

Qarprovince.Thesefields

producedanaggregateofabout220,000b/dattheendof2021,

andIraqtargetsatotal

productionof600,000b/d.39ThenegotiationshavenotprogressedasofSeptember2023.DQOC

raisedcapacityatSubbaoilfieldfrom10,000b/dto100,000b/dinearly2023.40

Eridu

Lukoil

250

2028

Thepilotphasewillinclude

30,000b/dstartingin2025andlastingthrough2028.Thefield’speakproductiontargetissetfor250,000b/d.41

WestQurna-2

Lukoil

330

2030

CapacityexpansionincludestheYamamareservoir.TheMishrif

reservoirincreasedfrom350,000b/din2021to480,000b/din

mid-2023.Apilotprojectfor

Yamamabeganin2021andasof

October2023wasproducing30,000b/d.42

Datasource:MiddleEastEconomicSurvey,FACTSGlobalEnergyServices,RystadEnergy,AlArabiya

News,andcompanywebsites

February2024

Note:b/d=barrelsperday

Figure3.MapsofIraq'sLargestOilandNaturalGasFieldsinNorthernandSouthernIraq

Turkey

Syrla

luDomme

aaya

AvanaDome

BalHass

Iraq

Gasfield

Oifield

Oipipeline

Char

Majno

Iraq

Zubair

Luhais

Parsian

Kuv

oilfield

éia)

éia'

Akkas

Iran

wai

Gulf

Datasource:Esri,OpenStreetMapcontributors,HERE,Garmin,FAO,NOAA,USGS

U.S.EnergyInformationAdministrationICountryAnalysisBrief:Iraq7

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Figure4.Iraq'stotalpetroleumandotherliquidsproductionandconsumptionmillionbarrelsperday

eia)Source:U.S.EnergyInformationAdministration,Short-TermEnergyOutlook,September2023

NaturalGas

●Atnearly131trillioncubicfeet(Tcf),Iraq'sprovednaturalgasreservesattheendof2022werethe12thlargestintheworld.43MostofIraq'snaturalgasreservesareassociatedwithoil,andmostoftheassociatednaturalgasisinlargeoilfieldsinsouthernIraq.44AlthoughIraqhas

sizeablenaturalgasreserves,regulatoryandinvestmenthurdlesandinsufficientnaturalgas

infrastructurehavekepttheamountoftheirnaturalgasproductionavailableforsalerelativelyflatsince2016(Figure5).

●Abouttwo-thirdsofIraq'snaturalgasoutputisassociatednaturalgas,whichisabyproductofoilproduction.45ProductioncutsfromIraq'soilfieldsinearly2020,followingtheOPEC+

agreement,loweredassociatednaturalgasoutputaswell,andnaturalgasoutputwasaround260billioncubicfeetperyear(Bcf/y).In2021,naturalgasproductionreturnedtoabout339BcfafterproductionofbothnonassociatednaturalgasfromtheKhorMorfieldandassociated

naturalgasrose(Figure5).Iraqconsumed612Bcfofdrynaturalgasin2021,mainlyforelectricpowergeneration.WeexpectthatIraq'snaturalgasconsumptiongrowthrosehigherthan

productionin2022.46IfIraqcommissionssomeofthenaturalgasprocessingplantprojectsscheduledtobeonlineby2024,naturalgasproductionfromassociatednaturalgasfieldswilllikelyincrease.

●AccordingtotheWorldBank,Iraqflaredmorethan630Bcfofnaturalgasin2022,rankingas

thesecond-largestsourcecountryofflarednaturalgasintheworld,behindRussia.4?Naturalgasisflaredbecauseofinsufficientpipelinecapacityandothermidstreaminfrastructuretomove

thenaturalgasfromcrudeoilproductionareas.Iraqdelayeditstargettoeliminatenaturalgasflaringto2027.48Ifraqcanmobilizetheinvestmentforcapturingitsassociatednaturalgas,it

U.S.EnergyInformationAdministration|CountryAnalysisBrief:Iraq8

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canusethatnaturalgastogenerateelectricity,especiallyduringthepeaksummerseason.ItcouldalsoreduceitsnaturalgasimportsfromIran.

•Iraqispursuingseveralprojectstocaptureassociatednaturalgasproductionandisnegotiatingseveralagreementswithvariouscompaniestoraisethecountry’snaturalgasprocessing

capacityfromaround600Bcfinmid-2023tonearly1.2Tcfin2027(Table3).49

•FederalIraqaimstonotonlycaptureandsellmoreassociatednaturalgasbutalsotodevelopnaturalgasfieldsnotassociatedwithoilproductiontomeetthecountry’sdemandandreducerelianceonIranfornaturalgasimports(Table3).ThegovernmentisprioritizingtheAkkasfieldinwesternIraqandtheMansuriyafieldnorthofBaghdadaskeynonassociatednaturalgas

projects.AlthoughIraqiskeentodevelopthesefieldsandtherequirednaturalgasprocessinginfrastructureforthem,theseprojectshaveencounteredseveraldelaysoverthepastdecadebecauseofissuesrelatedtosecurity,investment,contractterms,andcommitmentby

internationalpartners.InMarch2023,theAkkasfieldbeganpartialproductionatarateof22Bcf/ytoservealocalpowerplant,andIraqintendstofurtherdevelopthefieldusingforeigninvestmentandtechnology.50

•TheKRGhasonenonassociatednaturalgasfield,KhorMor,withanoperationalcapacityof183Bcf/y,whichsuppliespowerplantsinKurdistan(Table3).UAE’sDanaGas,theoperatorofKhorMor,beganworkonanexpansionprojectthatisslatedtoprovidenaturalgasfordomesticuseintheelectricpowersector.Oncedomesticpowerdemandissatisfied,additionalcapacityfromtheprojectcouldbeexportedtoTurkeyandtheEuropeanUnionorsenttopowerplantsin

northernFederalIraq.However,newnaturalgaspipelineswouldberequiredtosendthe

naturalgasoutsideoftheKRG.Aseriesofrocketattacksin2022temporarilysuspendedworkontheexpansionproject,butworkresumedonthefieldexpansioninearly2023.51

Table3.MajornaturalgasprojectsinIraq,2023

Project

Operatoror

projectinvestor

Additional capacity(billioncubic feetperyear)

Announcedstartdate

Notes

Associatednaturalgasprojects

Halfayanaturalgasprocessingplant

China’sCNPC

110

Early2024

Designedtocaptureflaredgas

fromthelargeHalfayaoilfieldinMissanprovince.Naturalgaswillreplaceoiluseintheregion’s

electricpowersector.52

BasraNaturalGasLiquids(BNGL)

project

BasraGas

Company

73bcf/yinPhase1and73bcf/yinPhase2

Second-half 2023andfirst-quarter2024

TheBasraGasCompanyintendstoadd73Bcf/yforeachphaseatitsBNGLprojecttoprocess

naturalgasfromtheMajnoon,WestQurna-2,andRatawioilfields.53

NassariyaGas

Plant54

SouthGas

CompanyandBakerHughes

73

Second-half2024

LocatedintheDhiQarprovinceandwillprocessnaturalgasfromtheNassariyaandGharafoil

fields.

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GasGrowth

IntegratedProject

TotalEnergies

110inPhase1and110inPhase2

2026and2028

AspartofTotalEnergies’dealinIraq,thecompanyplanstobuildanaturalgasfacilityintwo

phasestogatherandtreat

naturalgasfromtheWestQurna-2,Majnoon,Ratawi,Tuba,and

Luhaisoilfields.55

Total

549

Nonassociatednaturalgasprojects

KhorMor

expansionproject

UAE’sDana

Gasand

Crescent

Petroleum

91inPhase1and91inPhase2

Second-quarter2024andTBA

TheKRG’ssolenonassociated

naturalgasfield,KhorMor,hasacapacityof183Bcf/y,which

suppliespowerplantsin

Kurdistan.DanaGasintendstoexpandcapacityby91Bcf/ybymid-2024andplansasecondexpansionatalaterdate.56

Akkasnaturalfield

gas

Iraq’s

MidlandOil

Company

146(22Bcf/ybeganinMarch2023)

2027

LocatedintheremotewesternprovinceofAnbar,Akkasis

designedtosupplyanearby

powerplant.Productionof22Bcf/ybeganinMarch2023,butIraqisseekingapartnerto

furtherdevelopthefieldandbegandiscussionswithSaudiAramcoinMay2023.57

Mansuriyanaturalgasfield

TBA

110

TBA

SinopecandIraq’sinterim

governmentagreedonacontractforMansuriyanaturalgasfieldinJanuary2022,buttheparties

laterdisagreedonthecontract

terms.Sinopecexitedthe

agreement,andIraqisseekingafirmtoreplaceSinopec.58

Total438

Datasource:MiddleEastEconomicSurvey,IraqOilReport,ArgusMedia,RystadEnergy,Reuters,ShafaqNews,DanaGas

Note:TBA=tobeannounced,Bcf/y=billioncubicfeetperyear

February2024

Figure5.Iraq'snaturalgasproductionandconsumption,2000-2022

billioncubicfeet

eialDatasource:U.S.EnergyInformationAdministration,IntemationalEnergyStatistics

Electricity

·FederalIraqgeneratedanestimated134terawatthours(TWh)in2022,upfrom120TWhin2021.59Electricityoutputin2022increasedbecauseoftheeconomicrecoveryfollowingtheCOVID-19pandemicandhigherdemandfromtheoilindustrybecauseoftheupturninoil

productionaftertheOPEC+productioncutsexpired.60TheKRGgeneratedatmost17TWhin

2023.61

●Nearlyall(about98%)ofIraq'selectricitygenerationisfromoilandnaturalgas.Naturalgasuseintheelectricpowersectorincreasedafter2016becauseIraqbeganimportingnaturalgasfromIrantoincreaseitsownsupplies.Hydroelectricityaccountsformostoftheremainingshareofelectricityproduction.63

·Since2021,Iraqhasstartedoperatingthreethermalpowerplantswithacombinedcapacityof2.6GW,andIraqhasplanstoadd6GWofnewgenerationcapacityby2025.Iraqalsoplanstoincreasetheenergyefficiencyofexistingplantsandotherelectricpowersectorinfrastructure.64

·Althoughsolargenerationaccountedforaninsignificantshareoftotalpowergeneration,Iraqplanstodeveloprenewableenergyprojectstoreplacesomeofitsoilandnaturalgas-fired

capacityandtoreducenaturalgasandelectricityimportsfromIran(Table4).Iraqplansto

install12GWofrenewableenergycapacityby2030andsignedagreementswithseveral

internationalcompaniestodevelop4.5gigawatts(GW)ofutility-scalesolarprojectsin2021.65FederalIraq'savailablepeakelectricitygenerationsupplywasnearly23GWfor2022.The

availablesupplyin2022wasmuchlowerthanthe34GWneededtomeetpeaksummer

demand.66Iraq'selectricityuseisveryseasonalandreachespeakcapacityinthesummer

months.Generationplantsrunatlowutilizationrates,andtheavailableoreffectiveproductioncapacityismuchlowerthaninstalledcapacitybecauseofpoortransmissioninfrastructure,

inefficientordamagedpowerplants,andinsufficientnaturalgassupplyandinfrastructure.Peak

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summerdemandtypicallyexceedsactualgeneration,resultinginfrequentpowershortagesthathavecausedprotestseachyearsince2020.67

•Iraqburnscrudeoilandfueloildirectlyatpowerplantstomakeupforitslimitedfeedstockofotherpowergenerationfuels.Iraq’sreportedaveragecrudeoilusedatpowerstationsrose

fromanaverageof24,000barrelsperday(b/d)in2021to149,000b/din2022asaresultof

insufficientnaturalgas-firedelectricitygeneration(Figure6).68AlthoughIraq’sofficialreportsofcrudeoilburnwerelowduringrecentyears,weestimatethattheyusedatleast100,000b/dofcrudeoilforpowergenerationsince2015.69Inadditiontocrudeoil,Iraqburnshighsulfurfueloilforpowergeneration.Reportedtotaloil-firedpowergenerationinIraqrosesubstantiallyin2022toaround360,000b/dandreachedarecordhighinJune2023at535,000b/d.70

Table4.Iraq’ssolarpoweragreements

Operatororproject

Notes

investorCapacity(megawatts)

Al-BilalGroup(UAE)

525

Iraq’scabinetapprovedthe

powerpurchaseagreement

(PPA)with