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Iraq Expected to Achieve Gas Self-Sufficiency in Coming Years

Iraq spends approximately $25 billion annually on primary energy subsidies, with around $6 billion of that going towards importing Iranian gas (AFP)
Iraq spends approximately $25 billion annually on primary energy subsidies, with around $6 billion of that going towards importing Iranian gas (AFP)
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Iraq Expected to Achieve Gas Self-Sufficiency in Coming Years

Iraq spends approximately $25 billion annually on primary energy subsidies, with around $6 billion of that going towards importing Iranian gas (AFP)
Iraq spends approximately $25 billion annually on primary energy subsidies, with around $6 billion of that going towards importing Iranian gas (AFP)

Iraq has inked a fresh agreement with Iran to import gas for electricity generation, sparking criticism over its economic vulnerability. However, officials believe Iraq could eventually produce enough oil and gas domestically.

The deal keeps Iraq among the top spenders globally on energy subsidies, with $25 billion spent yearly, including $6 billion on Iranian gas.

The Ministry of Electricity announced Minister Ziyad Ali Fadel’s signing of a five-year contract with Iran for gas supply, aiming to meet electricity demand.

Gas imports from Iran began eight years ago, but delays often disrupt supply during summers, causing energy production to drop and sparking public protests.

Iraq imports gas through pipelines from Iran, mainly to power stations across the country.

The deal aims to sustain electricity production until Iraq’s own gas fields are fully operational.

Iraq faces challenges repaying its $11 billion debt for Iranian gas imports due to US sanctions against Iran. The US has granted Baghdad exemptions in the past, with the latest in March.

Iraq’s repayment of its debts to Iran relies on Tehran nominating companies to buy refined products from Iraqi refineries.

This workaround is due to US sanctions preventing direct sales to Iran, explains Nabil Al-Mirsoumi, an economics professor at the University of Basra.

Asim Jihad, spokesman for Iraq’s Oil Ministry, revealed that the recent 50-million-cubic-meter gas contract with Iran covers about 40% of Iraq's gas needs.

Jihad added that Iraq currently produces 1.5 billion standard cubic feet of gas, meeting 60% of its requirements.

Jihad defended Iraq’s gas production, stating it’s mainly associated with oil extraction and could increase with higher oil output.

Importing gas from Iran benefits Iraq due to proximity and lower transportation costs, Jihad noted.

Iraq aims for gas self-sufficiency soon, with recent oil ministry contracts and initiatives to utilize gas from oil fields for electricity generation.

In February 2023, Prime Minister Mohammed Al-Sudani announced his aim for gas self-sufficiency within three years.

Additionally, Iraq’s Oil Ministry signed agreements with Siemens Energy and Schlumberger to stop gas flaring from oil fields and use it for electricity.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."