Iraq will slowly raise domestic gas supply

Significance In early May, a sixth licensing round elicited minimal interest. However, hitherto slow-moving projects to capture and use associated gas burnt at oilfields are accelerating. That is due to US focus on lessening Iraq's reliance on what are already unreliable and costly imports from Iran. Impacts The Arab Gulf states could increase investment in Iraq's gas sector to counterbalance Iranian influence. Increased generation of heavily subsidised electricity will be the main driver of rising gas demand. Future licensing rounds will likely offer improved contractual terms for investment in gas-prospective acreage