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Iraq Says Gas Flaring to Reach Zero by End-2028

Iraq’s Prime Minister Mohammed Shia al-Sudani inspects the electricity ministry pavilion at the Iraq Energy Exhibition and Conference
Iraq’s Prime Minister Mohammed Shia al-Sudani inspects the electricity ministry pavilion at the Iraq Energy Exhibition and Conference
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Iraq Says Gas Flaring to Reach Zero by End-2028

Iraq’s Prime Minister Mohammed Shia al-Sudani inspects the electricity ministry pavilion at the Iraq Energy Exhibition and Conference
Iraq’s Prime Minister Mohammed Shia al-Sudani inspects the electricity ministry pavilion at the Iraq Energy Exhibition and Conference

Iraq’s Prime Minister Mohammed Shia al-Sudani stated on Saturday that the government is moving forward with the development of clean and renewable energy sectors.

Speaking at the opening of the Iraq Energy Exhibition and Conference, al-Sudani said Iraq has made significant progress in capturing associated gas, with the rate of flaring reduced by more than 72%.

He said flaring will be fully eliminated by the end of 2028.

“We have infrastructure projects at the level of the Ministry of Oil that ensure export capacity and the diversification of export outlets,” al-Sudani said, according to the Iraqi News Agency.

He added that Iraq is holding talks with international companies to invest in associated gas and free gas in oil fields and exploration blocks, expressing hope that the conference would help reinforce this direction. He said the government has also moved toward establishing a permanent platform to secure Iraq’s gas needs through imports or future exports.

Al-Sudani stated that the Ministry of Electricity is working to increase power generation under an ambitious plan that exceeds 57,000 megawatts through the Siemens and GE project.

He added that the ministry is also advancing renewable energy projects, both large and small, with a plan at the district and subdistrict levels in Baghdad and other provinces to transition to renewable energy, which is expected to be implemented by next summer.

He said the government is placing strong emphasis on both conventional and renewable energy in a way that ensures sustainable development.

Al-Sudani stated that the exhibition showcases Iraq’s position as a promising market with significant opportunities in the energy sector, through various projects, partnerships, and investment opportunities.

He said the government has made significant progress in boosting energy production through major oil projects in partnership with global companies, including TotalEnergies and BP, adding that talks are ongoing with ExxonMobil, Chevron, and other international firms.

Talks with Chevron

Iraq’s Oil Minister Hayan Abdul Ghani said talks are underway with Chevron regarding the West Qurna 2 oil field, which is operated by Lukoil and represents the company’s largest foreign asset.

Chevron and Exxon Mobil are among the potential bidders for Lukoil’s overseas assets following the imposition of US sanctions on the Russian oil producer.

Speaking to reporters after the opening of the energy exhibition and conference, Abdul Ghani stated that negotiations with Chevron over the West Qurna 2 field in Basra province are ongoing.

He added that Basra Oil Company, the second partner in the field, has not yet taken over operations following Lukoil’s withdrawal.

Al-Sudani opened the 11th edition of the Iraq Energy Exhibition and Conference in Baghdad on Saturday, with the participation of more than 450 local, Arab, and international companies specializing in energy and investment.

The event runs for three days.

The Iraqi Company for Exhibitions and Commercial Services said the conference, held at the Baghdad International Fairgrounds from Jan. 10 to 12, will feature panel discussions, specialized workshops, and meetings aimed at supporting the energy sector and expanding partnership and investment opportunities, with participation from more than 450 companies.

Iranian gas

Iraq’s Ministry of Electricity said there are no indications that Iranian gas supplies will resume soon.

A ministry spokesperson stated that media outlets were notified via a message from Iran on Telegram, which indicated that gas supplies had been halted due to low temperatures and Tehran’s domestic gas needs.

Iraq announced in December that Iranian gas supplies had ceased, resulting in the shutdown of some power generation units and load reductions at others. The Ministry of Electricity said the grid lost between 4,000 and 4,500 megawatts as a result.

Iran supplies between 30% and 40% of Iraq’s gas and electricity needs.

Electricity ministry officials previously stated that peak winter demand in Iraq reaches approximately 48,000 megawatts, while domestic production stands at around 27,000 megawatts, forcing the country to rely on imports to bridge the gap.

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Business

UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
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UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER

The UAE stock markets fell in early trade on Thursday, extending losses from the previous session after exchanges reopened following a two-day trading halt triggered by Iran’s missiles and drones.

The UAE's stock markets reopened on Wednesday.

Both exchanges said they will temporarily set a 5% lower price limit on securities.

Dubai's main share index sank more than 4%, as stocks retreated across the board, with top lender Emirates NBD and blue-chip developer Emaar Properties both losing 4.9%.

Elsewhere, budget airline Air Arabia declined 4.9%.

However, utility firm Dubai Electricity and Water Authority advanced 4.4%.

In Abu Dhabi, the index retreated 2.3%, with the country's biggest lender First Abu Dhabi Bank declining 4.9% and Aldar Properties was ⁠down 5%.

Among ⁠other fallers, Abu Dhabi Commercial Bank tumbled 5%.

Business

US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
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US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)

A steep selloff ‌in US Treasuries extended into a fourth straight day on Thursday, as investors fretted that surging energy prices from the war in the Middle East could stoke inflation and derail the Federal Reserve's rate outlook.

The benchmark 10-year US Treasury yield jumped as much as 5 basis points in Asia to a three-week high of 4.1310%, extending its rise for the week thus far to nearly 17 bps.

The two-year yield was meanwhile up about 2 bps to ‌3.5640%, having ‌also gained more than 18 bps ‌this ⁠week. Bond prices move ⁠inversely to yields, said Reuters.

Investors have pared back expectations of further easing from the Fed this year on the back of the US-Israel war with Iran, which entered its sixth day as Iran launched a wave of missiles at Israel, sending millions of residents into bomb shelters.

That has ⁠kept oil prices elevated, and with shipping ‌through the key Strait of ‌Hormuz paralyzed, investor focus has quickly shifted to the risk ‌of a resurgence in inflation.

"As of right now, ‌the (US) consumer price index is going to get back to the high (2%) if crude oil costs don't tumble in short order," said Jose Torres, senior economist at Interactive Brokers.

"The reversal in (inflation) ‌progress would likely send Treasuries and stocks further lower, as rate-cut optimism amid decelerating cost ⁠pressures was ⁠what sparked the rallies in fixed income and cyclical benchmarks early in 2026."

Traders are now pricing in just a 34% chance of a Fed cut in June, as compared to a near 46% chance a week ago, according to the CME FedWatch tool.

Fed funds futures point to just over 40 bps worth of easing by the year-end.

The shifting Fed expectations have also come on the back of Wednesday's upbeat US economic data, which showed services sector activity surged to more than a 3-1/2-year high in February amid strong demand.

Business

Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
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Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)

Amid the ongoing Iran war and Tehran’s announcement of the closure of the Strait of Hormuz, a key artery for global energy supplies, Egypt has begun highlighting the SUMED pipeline linking the Red Sea and the Mediterranean as a potential temporary alternative for oil transport.

The move has raised questions about whether the pipeline, a vital connection between the two seas, could help offset disruptions to the volatile waterway.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi addressed the issue during a government press conference on Tuesday, saying Egypt “has sufficient technical and logistical capabilities to support this strategic route.”

He said the SUMED pipeline enhances the flexibility of oil supply flows in the region and confirmed Egypt’s readiness to cooperate with Gulf states to facilitate oil transport from the Red Sea to the Mediterranean through the line.

Energy experts who spoke to Asharq Al-Awsat agreed that the pipeline could help ease the current energy crisis amid the absence of any political solution to end the war, noting the line was originally designed as an alternative route when oil shipments face obstacles passing through the Suez Canal.

SUMED pipeline

The pipeline is owned by the Arab Petroleum Pipelines Company (SUMED), an Arab joint venture led by Egypt, with a 50% stake held by the Egyptian General Petroleum Corporation, alongside partners from Gulf states.

The pipeline runs across Egypt from Ain Sokhna on the Gulf of Suez to Sidi Kerir on the Mediterranean coast, with a capacity of about 2.8 million barrels per day.

According to Egypt’s petroleum ministry, the pipeline transported about 24.9 billion barrels of crude oil and more than 730 million barrels of petroleum products from its launch in 1974 through 2024.

Ahmed Kandil, head of Energy Studies Program at the Al-Ahram Center for Political and Strategic Studies, said the line’s importance lies in easing disruptions to oil trade following Tehran’s declaration that it had closed the Strait of Hormuz.

He told Asharq Al-Awsat that oil shipments could reach the pipeline via tankers transporting crude from Saudi Arabia’s Yanbu port to Egypt’s Ain Sokhna port, from where it would move through the pipeline to the Mediterranean and onward to Europe.

He said coordination with Gulf states is underway to contain concerns over energy supplies, particularly among European consumers.

Kandil added that the arrival of part of Gulf exports to European markets is highly important, helping limit spikes in Brent crude prices, which have already surpassed $80 per barrel.

“The growing importance of the Egyptian pipeline comes amid the absence of a political horizon, which means the current conflict could be prolonged,” he said.

Storage capacity

According to the US Energy Information Administration, the main reason for building the SUMED pipeline at this location is that very large crude carriers — capable of transporting about 2.2 million barrels — cannot pass through the Suez Canal due to their excessive weight and width, which could risk grounding.

Instead, they offload their cargo at Ain Sokhna, where the oil is transported through the pipeline to the other side of Egypt. Smaller vessels then reload the crude at Sidi Kerir and sail to Europe and the United States.

Energy markets expert Ramadan Abu Al-Ala said the Egyptian pipeline serves as an alternative to the Suez Canal and could temporarily ease the crisis caused by the closure of the Strait of Hormuz.

He noted that the pipeline is particularly effective for oil tankers arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates, which can unload at Ain Sokhna before the crude is transported to the Mediterranean and European markets.

Abu Al-Ala expects SUMED to become even more important for Gulf oil exports to Europe if the war drags on, increasing reliance on the pipeline. However, he said this would require enhanced security measures for oil tankers operating in the Red Sea.

Energy market experts also highlighted another advantage: the pipeline’s large storage capacity. SUMED operates storage tanks with a total capacity of 40 million barrels of oil.

In February 2019, Saudi Aramco signed two agreements with the company to provide storage capacity for diesel and fuel oil.