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Iraqi Kurdistan has ambitious plans to significantly ramp up gas production and exports in the coming years – to up to 20bcm/year early next decade.
The KRG offers Turkey a potential alternative source of gas imports to current major suppliers Russia, Iran and Azerbaijan, and at a lower price. However, if it is to achieve its export ambitions, the cash-strapped KRG must convince international oil companies (IOCs) that it is willing and able to offer sufficiently attractive commercial terms to incentivize gas field development at a time when the industry is reducing upstream capex.
Tony Hayward, the ever-bullish chairman of Anglo-Turkish independent Genel, spoke of his vision for KRG gas at the Atlantic Council Summit on Energy and Economics in Istanbul on 20 November. Mr Hayward proclaimed that “It is pretty clear that the Kurdistan Region is on its way to becoming a very major gas province, with potentially 5 trillion cubic metres [177tcf] of gas still to be discovered.” This, he added, would be sufficient to fulfil Turkey’s gas demands for the next 50 years. (CONTINUED - 1499 WORDS)