Iraq’s Northeastern Diyala province could emerge as a key hub for gas industry through strategic investments in its gas fields, according to Abdullah Al-Qadi, CEO of UAE-based Crescent Petroleum.

Speaking at the Iraq Energy conference in Baghdad on Tuesday, Al-Qadi highlighted challenges in fast-tracking gas production at the Al-Khashm Al-Ahmar field, citing bureaucratic delays within Iraqi state institutions.

"We aimed for rapid development, similar to our success at the Kor Mor field in al-Sulaymaniyah, where the Kurdistan Regional Government (KRG) granted us the necessary clearances to achieve production within 15 months. However, in Diyala, administrative hurdles have slowed progress," he said.

He added that that despite these obstacles, the project remains on track for completion within two years.

He also emphasised Diyala’s potential to become a “gas industry hub” by linking its fields with nearby reserves such as Ajil and even those in al-Sulaymaniyah.

In 2023, Iraq’s Ministry of Oil activated three contracts with Crescent Petroleum to develop the Al-Khashm Al-Ahmar, Kallabat, and Khider Al Mai fields, as part of the fifth licensing round aimed at harnessing 400 million standard cubic feet of gas.

The development of Iraq’s gas sector holds transformative potential for the country’s economy leading to energy self-sufficiency and opening up opportunities for gas exports.

Additionally, utilising gas from fields like Khawr Al-Zubair, Kallabat, and Khider Al Mai could reduce reliance on oil and lower import costs, strengthening Iraq’s energy security while fostering industrial growth in sectors such as petrochemicals and fertilisers.

(Reporting by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.