Iraq was top target of China's Belt & Road in 2021
Iraq has become the third-biggest partner in BRI for energy engagement since 2013
By Shivani Singh, Reuters News
Iraq was the top target for China's Belt & Road infrastructure initiative in 2021, receiving $10.5 billion in financing for projects including a heavy oil power plant, a study published on Wednesday said.
In total, China's engagement through investments and contractual cooperation across the 144 Belt & Road Initiative (BRI) countries was $59.5 billion, in line with the $60.5 billion in 2020, according to the report by the Green Finance & Development Center at Shanghai's Fudan University.
However, in Arab and Middle Eastern countries, investment last year rose by about 360% and construction engagement by 116% compared to 2020, the study said.
Iraq, where the United States ended its combat mission last year, has become the third-biggest partner in BRI for energy engagement since 2013, after Pakistan and Russia, the study said.
China and Iraq are cooperating to build the $5 billion Al-Khairat heavy oil power plant in Karbala Province in Iraq and China' Sinopec has won the contract to develop Iraq's Mansuriya gas field near the Iranian border. The two countries are also cooperating on an airport, solar and other projects.
China's BRI contract values in 2021 were $45.6 billion, up from $37 billion a year earlier, while investments shrank to $13.9 billion from $23.4 billion.
Green energy finance and investment edged up to $6.3 billion compared with $6.2 billion in 2020, and China did not engage in coal projects in 2021, in line with President Xi Jinping's pledge not to build coal-fired plants overseas.
For 2022, the researchers expect an acceleration of green projects, in line with government guidelines, although oil-related finance and investment under BRI surged to $6.4 billion in 2021 from $1.9 billion in 2020.
PROJECTS: Iraq to build new petrochemicals city
It has attracted 569 applications
OPEC member Iraq has approved plans to build a new city housing oil and petrochemical industries within a post-war strategy to develop the industrial sector, an official was quoted on Wednesday as saying.
The city will be built in the central Karbala Governorate and it has already attracted 569 applications to set up plants, Governor Nasif Al-Khattabi said.
He told the official Alsabah newspaper that the city would be spread over an area of around 12 million square metres and is the 4th of its kind in Iraq after those in the Southern port of Basra, as well as Dhi Qar and Alanbar Governorates.
“ We have received approval from the Industry Ministry to construct a large industrial city covering mainly oil and petrochemical industries, ” Khattabi said.
In May, the Industry Minister revealed plans to build industrial cities for various products in five governorates within a drive to rebuild the manufacturing sector and lessen reliance on volatile crude exports.
(Writing by Nadim Kawach; Editing by Anoop Menon)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy.
UAE's Dana Gas: Gas production in Iraqi Kurdistan rose 50% in 3 years
Pearl Petroleum consortium plans to implement further process improvements
UAE-based energy firm Dana Gas and its partner Crescent Petroleum said gas production from their operations in the Kurdistan Region of Iraq (KRI), grew 50 percent to hit a record 452 million cubic feet of gas per day (MMscf/d) at the end of 2021.
Process improvements at the Khor Mor gas plant led to production growing from 305 MMscf/d in 2018, the energy firms said in a statement on Wednesday.
Further planned improvements include:
• Implementing the $630 million KM250 expansion project at the plant which will increase total capacity by an additional 55 percent to 700 MMscf/d by April 2023.
• Preparing to drill up to five development wells, which are scheduled to commence production in March 2022.
• Planning a further KM500 train that would raise production to almost 1 billion cubic feet per day.
Dana Gas and Crescent Petroleum, the oldest private oil & gas company in the Middle East, jointly operate the Khor Mor and Chemchemal gas fields on behalf of the Pearl Petroleum consortium, supplying the gas which enables electricity generation in the KRI, and producing close to 16,000 barrels of condensate and 1,000 tonnes of LPG per day.
Total investment by the Pearl Petroleum consortium exceeds $2.3 billion to date, with total cumulative production of over 360 million barrels of oil equivalent (boe) of natural gas and liquids. The supply of gas to power plants in Erbil, Chemchemal and Bazian provides over 80 percent of the KRI’s power generation and has resulted in significant fuel cost savings through substitution of diesel, the company said.
(Reporting by Brinda Darasha; editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy.
PROJECTS: Iraq's foreign currency reserves increase to $64bln - official
High foreign currency reserves will benefit Iraq's projects sector
Iraq s foreign currency reserves have increased by $13 billion to $64 billion by end-2021 thanks to pragmatic management of the economy by the government, increase in revenues due to rebound in oil prices and efficient disbursement of public funds, a top government official said.
These factors contributed to strengthening the foreign currency assets of the Central Bank, said Mudher Muhammad Saleh, financial advisor to the Prime Minister.
Saleh told Zawya Projects that the increase in foreign currency reserves would benefit projects with as many as 6,000 post-war rebuilding projects stalled across the country due to cash crunch.
He said the reserves could be used by the government to support concessional financing for development projects and guarantee public-private partnership projects.
PROJECTS: Baghdad Investment Commission granted 421 investment licenses in 2021
Top three sectors were commercial, tourism and residential
The Baghdad Investment Commission (BIC) granted 421 licenses for investment projects across all sectors last year.
The Commission said in a statement that the commercial sector accounted for 114 investment licenses. It said 93 licenses were granted to the tourism sector; 83 to the residential sector; 45 to the industrial sector; 36 licenses to the educational sector; 27 licenses to the health sector and 23 to the agricultural sector.
(Writing by Majda Muhsen; Editing by Anoop Menon)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy.