Iraq’s Costly Liquids Habit

Despite record gas volumes flowing to Iraq’s power stations in 2018, liquids burn also edged up. Fuel oil has largely replaced crude for powergen.

Iraq’s gas shortages mean the country is dependent on burning liquids for electricity generation. Total liquids burn edged up in 2018 to 328,000 b/d from 318,000 b/d in 2017 as post-war reconstruction drove increased demand. The increase would have been considerably greater had it not been for higher gas production ( MEES, 22 February ) and gas imports from Iran ( MEES, 8 February ).

Volumes of gas delivered to power plants averaged 1.3bn cfd in 2018, up a massive 43% year-on-year. If not for the additional gas supplies, then Iraq would have had to lean even more heavily on its crude and fuel oil for power generation, cannibalizing its primary revenue stream. Liquids burn peaked at 348,000 b/d in 2016. (CONTINUED - 475 WORDS)


chart 1. Iraq Crude Burn Collapsed To 36,000 B/D In 2018 ('000 B/D)
chart 2. Crude Burn Volumes Remained Low Even During Summer's Peak Demand ('000 B/D)...
chart 3. Meanwhile Fuel Oil Burning Jumped 45% Y-O-Y ('000 B/D)
chart 4. Fuel Oil Is Used As A Key Baseload Fuel, With Minimal Monthly Fluctuations ('000 B/D)