Former US energy official says Kurdish gas could 'replace Russian, Iranian gas'

WASHINGTON, United States - The Kurdistan Region’s gas could “replace Russian and Iranian gas” as the Region has significant reserves, a former energy official at the United States Energy Department told Rudaw on Thursday.

Ahead of US President Joe Biden’s visit to the Middle East which includes a stop in Saudi Arabia, Matthew Zais, vice-president of government affairs for HKN Energy said the Region should be on the agenda of the trip which is scheduled for July 13-16 due to the “critical role” it plays.

“He [Biden] is going to meet important allies in Saudi Arabia, but our position is that the Kurdistan region should be on the agenda for this visit because of the critical role that Kurdistan plays, it is one of our most long-term strategic allies and national security partners for the United State,’’ Zais said, noting that its “oil and gas sector is key.”

Kurdistan Region’s “gas is critical as well … [it] has significant enough reserves that it could replace Russian and Iranian gas through Turkey for southern Europe,” he added.

The US company HKN Energy operates in Duhok province and has had a $4 billion economic impact in the Region. It has a 75 percent local workforce that it aims to increase to 90 percent in the next five years. 

The shortages in the international energy market as a result of the war in Ukraine have highlighted the importance of smaller players, such as the Kurdistan Region, for the world market.

Kurdistan Region Prime Minister Masrour Barzani in March said he was certain that the Region would soon be transformed into “an important source of energy for the world’s growing demand.” Participating at an energy forum in the United Arab Emirates, he addressed the Region’s current and future programs aimed at positioning it as a key energy exporter. 

“We are one of the Regions that are flourishing and are trying to become a main player to provide energy, not just to the region, but hopefully to Europe and to the rest of the world, as we are discovering more oil and gas fields and we are trying to develop those areas and this is something that may not be in the interest of the Iranians in this case,” Barzani said at the time.

Russia's ambassador to Iraq in May said Moscow “absolutely” has no objections to the Kurdistan Region’s plans to export natural gas. 

Zais’s remarks come at a time when the Kurdistan Regional Government (KRG) is under extreme pressure from Baghdad over its energy sector. Iraq’s federal court ruled in February that the KRG oil and gas law from 2007 is unconstitutional, and demanded that the Kurdistan Region hands over crude supplies to the federal government.

Top Kurdish leaders rejected the ruling, deeming it “unjust” and “political.” Zais made similar statements.

The decision “is clearly politically motivated, it is Iranian-backed [and] politically motivated judiciary ruling,’’ he said.

Zais said the oil sector “which is at risk now from Iran” should also be on Biden’s agenda.

Dozens of attacks, widely blamed on Iran-backed militias, have targeted the Region’s oil and gas industry. In March, 12 basaltic missiles were fired at Erbil possibly to stop the Kurds from exploiting their natural gas resources. A key gas field operated by the UAE’s Dana Gas was targeted three times in under a week in Sulaimani’s Chamchamal late June. 

The energy official noted that the US “can do more” in assisting the Region to face such attacks while calling for accountability of perpetrators.