Monday, August 26, 2024

DINAR REVALUATION UPDATE: Al Sudani’s Ambitious Energy Plans for Iraq in 2024: A New Era Dawns, 26 AUGUST

Al Sudani’s Ambitious Energy Plans for Iraq in 2024: A New Era Dawns

Iraq's Prime Minister, Mohammed Shia Al Sudani, has embarked on a transformative journey to reshape the country's energy sector, aiming to reduce its dependency on Iran and enhance its energy independence by 2030.  His ambitious plans, which have garnered attention and support from US companies and the government, could signal the beginning of a new era for Iraq's energy landscape. 

Strategic Initiatives and Collaborations

During a pivotal visit to the United States, Prime Minister Al Sudani met with President Joe Biden and several American companies to discuss and finalize strategic initiatives aimed at strengthening Iraq's power sector.   Key among these was an announcement by GE Vernova, which outlined plans to boost power generation and enhance the availability of power supply across Iraq by injecting an additional 3 gigawatts (GW) of energy into the grid through highly efficient combined cycle power plants. 

The Role of US Companies

American companies, including KBR, Transatlantic Petroleum, Honeywell/UOP, Baker Hughes, Emerson, Arc Energy, and GE, are working closely with RASEP, a Baghdad-based energy infrastructure developer, to develop one of the world's largest oil and gas fields—Nahr Bin Umar in southern Iraq.   This project includes the development of an associated liquefied natural gas (LNG) export facility near Basra, which could become operational within the decade. 

Economic Impact and Job Creation

The Iraqi government has approved the construction of the country's first LNG regasification import terminal in the southern port of Al-Faw, which could potentially be converted into an export terminal.  This move, alongside other energy sector developments, is expected to create thousands of local direct and indirect jobs, stabilize Iraq's economy, and expand the country's treasury. 

Addressing Emissions and Climate Change

Iraq is a promising market for American energy and technology companies, with investments in the energy sector also aimed at addressing emission reduction goals.  These efforts reinforce US governmental initiatives towards climate change, highlighting the mutual benefits of economic development and environmental sustainability. 

A Comprehensive Relationship

Prime Minister Al Sudani's visit to the US also underscored the desire for a 360-degree, comprehensive relationship between the two nations.  This includes a focus on economic, educational, and people-to-people domains, beyond the traditional security and military ties. 

Security and Cooperation

Despite domestic and Iranian pressure to reduce the US military presence, Al Sudani is keen on managing this pressure in a way that does not detract from his broader political and economic agenda.  The establishment of the Higher Military Commission (HMC) by Iraq and the United States in August 2023 is aimed at transitioning from the anti-ISIS coalition mission to bilateral security relations. 

A New Chapter for Iraq

Al Sudani's ambitious energy plans, coupled with strategic collaborations with US companies and the government, could indeed signal a new era for Iraq, marked by enhanced energy independence, economic stability, and a more comprehensive partnership with the United States. 


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