Iraq Signs Agreement with Siemens to Convert 120 million Cubic Feet of Gas into Fuel for Electricity

 Iraqi Electricity Minister, Ziyad Ali Fadel and Siemens Energy CEO Christian Bruch shake hands after signing the agreement in Berlin on Wednesday (INA)
Iraqi Electricity Minister, Ziyad Ali Fadel and Siemens Energy CEO Christian Bruch shake hands after signing the agreement in Berlin on Wednesday (INA)
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Iraq Signs Agreement with Siemens to Convert 120 million Cubic Feet of Gas into Fuel for Electricity

 Iraqi Electricity Minister, Ziyad Ali Fadel and Siemens Energy CEO Christian Bruch shake hands after signing the agreement in Berlin on Wednesday (INA)
Iraqi Electricity Minister, Ziyad Ali Fadel and Siemens Energy CEO Christian Bruch shake hands after signing the agreement in Berlin on Wednesday (INA)

Iraqi Electricity Minister Ziyad Ali Fadel signed on Wednesday an agreement with Siemens Energy in Berlin to convert flared gas into fuel for electricity.
The agreement covers about 120 million standard cubic feet of gas within a period of 6 months and an additional 120 million standard cubic feet within one year, according to the Iraqi news agency (INA).

The agreement comes as part of the Iraqi government’s efforts to stop gas flaring and to invest it effectively in generating electrical energy, the Minister’s office said in a statement.

It is also part of Iraq’s commitment to the decisions of the Paris Climate Conference in preserving the environment and providing renewable energy sources.
The statement said the agreement is characterized by rapid implementation, as it includes investing about 120 million standard cubic feet (meaqf) of gas within a short period of 6 months, and an additional 120 (meaqf) within a period of one year.
The gas produced will be used to establish an electrical station with a capacity of 2000 megawatts, to enhance Iraq’s national electricity grid.

Siemens Energy CEO Christian Bruch commended the Iraqi government for its efforts in overcoming the obstacles that the energy industry has encountered for a long time.

“Iraq has been successful in constructing several infrastructure projects in the last few years that will help develop the actual capabilities of the Iraqi energy sector,” he said, according to the Ministry statement.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.