EU, Iraq seek closer energy ties
BRUSSELS (AFP) — EU and Iraqi officials agreed Thursday to pursue closer energy ties, part of a broader strategy by Europe to reduce its dependence on Russian supplies.
Iraqi Oil Minister Hussain al-Shahristani said his visit to Brussels was an opportunity to confirm Iraq's commitment to supply Europe with both oil and gas.
EU External Relations Commissioner Benita Ferrero-Waldner, who met the Iraqi minister, said Iraq "is a natural energy partner for the EU, both as a producer of oil and gas and as a transit country for hydrocarbon resources from the Middle East and the Gulf to the EU."
"Energy is a key element for Iraq's economic development, and the EU energy market, as the largest integrated market in the world, offers interesting opportunities for Iraq," she added.
She said the European Union was keen to see Iraq link into the Arab gas pipeline project from Egypt to Jordan, near the Syrian border.
The natural gas pipeline, still under construction, will allow European customers to tap into supplies from Egypt and other countries along the line.
"We talked about Iraqi gas," said EU Energy Commissioner Andris Piebalgs, who also met the Iraqi oil minister.
"It is important it is available to the EU market," he added.
Al-Shahristani said Iraq planned to develop its gas fields this year and should be in a position to supply Europe with gas "in two or three years."
EU countries currently depend on Russia for around a quarter of their gas supplies.
In the last two years, price disputes between Russia and Belarus and Ukraine have caused supply disruptions in Europe and led the EU to seek new suppliers and transit routes.
One such project is the Nabucco pipeline, which would carry gas from central Asia to Europe, circumventing Russia.
The European Union is planning to build the 3,300-kilometre (2,050-mile) pipeline to transport gas from the Middle East and Central Asia to its energy-hungry consumers in Europe while bypassing Russia.
On the oil front, Iraq, which boasts the third largest reserves in the world, is studying the possibility of building new pipelines through Turkey, al-Shahristani said.
Oil extracted from the massive Kirkuk field in northern Iraq is currently exported via a pipeline that links up to the Turkish Ceyhan terminal on the Mediterranean.
Frequently attacked, the pipeline has often been closed over the past five years.
However the Iraqi minister stressed that security is improving.
"There is a definite improvement in the security," he said.
"The very same people who were attacking the pipelines have now been recruited in the oil protection force... to protect those pipelines and they are doing an excellent job".
Iraq and the EU are also negotiating a trade and cooperation agreement.
Since 2003, the European Commission has contributed more than 800 million euros to help rebuild war-scarred Iraq.
A further 76 million euros is earmarked for this year.
