A gas flare burns at Russian oil refinery, operated by OAO Lukoil. in Russia. Picture: BLOOMBERGThe prime minister of Iraqi Kurdistan, Masrour Barzani, has been touting the autonomous region’s gas export capabilities as an alternative to Russian supply, but division between the region’s two main parties suggest the plan is, for now, a pipe dream.
Those tensions have escalated in recent months, both because of the gas row and after the KDP put forward its own candidate for the Iraqi presidency — a position traditionally held by Kurds from the PUK under a power-sharing arrangement. Widespread economic hardship among young Kurds was one of the main factors behind the migrant crisis on Belarus’ borders in late 2021 and early 2022.
To get gas to markets outside Iraq, the easiest route is north to Turkey, through land controlled by the KDP.Pearl Consortium, majority-owned by Abu Dhabi-listed Dana Gas and its affiliate Crescent Petroleum, has the rights to exploit the two fields. It plans to more than double production to up to 1-billion cubic feet per day in the next few years, enough to cover domestic needs.
But Talabani complained that the KDP excluded his party from talks and there was no tendering process or transparency about how KAR was awarded the pipeline construction contract. Further undermining the export plans is Iran, which has considerable sway over its neighbour. Some analysts said it was opposed to a project that could undermine its influence in the region.Last month, Kurdish president and cousin of Masrour Barzani, Nechirvan Barzani, visited Sulaimaniya and met top PUK officials, the first senior meeting involving both sides in months.
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