Tishwash: Kurdistan Region ratifies new financial agreement with Baghdad
The Kurdistan Regional Government’s Council of Ministers approved a new understanding with the federal government on Wednesday, which includes mechanisms for disbursing salaries and financial dues to the region’s employees, in addition to mutual financial and oil commitments.
The council held its meeting, chaired by Prime Minister Masrour Barzani, with the participation of Deputy Prime Minister Qubad Talabani, according to an official statement issued by the regional government.
At the beginning of the meeting, the Council of Ministers condemned the terrorist attacks targeting the region’s oil fields, which led to material losses in the energy sector, stressing that their aim was to harm the economic infrastructure. The Council called on the federal government to take firm legal measures to stop these attacks and hold those responsible accountable.
The meeting also discussed the negotiating process with the federal government regarding the financial situation and salaries of the region’s employees, with the Prime Minister and his deputy providing a detailed explanation of the results of the talks held in Baghdad yesterday.
According to the statement, the understanding included the federal government sending salaries and financial dues to the region in accordance with the new agreement. The Council of Ministers welcomed these understandings and decided to proceed with their implementation.
In a related development, Ali Hama Salih, head of the “Mawqif” bloc in the Kurdistan Parliament, wrote in a Facebook post that the regional government, under the agreement, agreed to deliver 120 billion dinars per month in local revenues, in addition to 230,000 barrels of oil per day to Baghdad. link
Tishwash: Learn about the details of the new financial agreement between Baghdad and Erbil.
An informed source revealed details of a new financial agreement concluded between the federal government in Baghdad and the Kurdistan Regional Government on Wednesday, aiming to settle salaries, oil exports, and unify revenues .
The source told Al-Sa’a Network, “The agreement stipulates that the Kurdistan Regional Government will hand over 240 billion dinars in revenues for the months of May and June, at a rate of 120 billion dinars per month, in addition to handing over 230,000 barrels of oil per day to Baghdad, in exchange for the latter sending the salaries of the region’s employees for those two months .”
He pointed out that “the regional government will actually begin the process of handing over local revenues from border crossings, along with the agreed-upon amount of crude oil, as part of implementing the terms of the new agreement .”
The source added, “The next phase will witness meetings between joint technical committees to review and audit figures and statistics related to oil exports and imports, as well as to discuss the region’s share of the federal budget link
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Tishwash: American companies seek investments in Iraq’s gas sector.
ectNew tender issued for a floating liquefied natural gas (LNG) terminal pro
With Iraq suffering from a severe gas and electricity shortage, especially in the summer, and insufficient domestic production, a large portion of which is flared as associated gas, and with gas imports from Iran having fallen by more than half, the country has re-tendered the construction of a floating storage and regasification unit (FSRU) to convert liquefied natural gas into gas for use in power plants.
The American company Accelerate Energy currently appears to be the favorite to implement this project.
A report published on the American energy news website Oil Price indicates that Iraq’s plan to begin importing liquefied natural gas (LNG) this summer has not been successful, prompting the government to urgently revise its ambitions for the floating terminal.
With electricity demand increasing and gas supplies scarce, the Ministry of Oil has re-tendered the FSRU in an attempt to secure regasification capacity in time for summer 2026. US-based Accelerate Energy is now the most likely supplier, after a previous agreement with the UAE’s Breeze Investment failed to advance.
The report states that timing is critical, as Baghdad faces another peak season without enough gas to stabilize the electricity grid, while US sanctions and fluctuating Iranian supplies are narrowing Iraq’s fuel options.
The FSRU project will not only provide a technical solution, but could also be a turning point in Iraq’s foreign energy policy by opening a commercial channel for importing gas from the United States.
Initial plans to import LNG were drawn up in early 2024, when the Ministry of Oil issued a limited tender to lease an FSRU, which would dock at one of the southern ports (Khor al-Zubair or Umm Qasr) and feed a 1.2 GW power plant under construction near Basra. Officials had hoped to have the unit operational before the peak summer of 2025, but this goal has not been met.
According to a report by MEES on July 11, initial talks with Breeze Investment stalled in June after the company’s vessels were reassigned. Ezzat Saber, the deputy oil minister for gas affairs, told reporters that the government had urgently re-tendered the contract and expected to sign it within 10 days. However, any new agreement would likely extend beyond the current summer window, as contract timing, permitting, offshore infrastructure preparation, and ship commissioning all take time. Even if a quick deal is signed in July, gas flows are unlikely before the second quarter of 2026.
Baghdad is currently in active talks with Accelerate, which participated in the tender with Breeze earlier this year and is now the only viable short-term supplier. Accelerate owns a global fleet of regasification vessels and has recorded successful operations in several other countries. Its Exemplar vessel is reportedly completing a short mission in the Mediterranean and could reposition to Iraq in early 2026 if contracted soon.
For this reason, LNG imports are Iraq’s most visible response to the gas supply crisis that has affected the electricity sector for more than a decade. Associated gas collection and processing remain insufficient and often flared, while non-associated fields remain undeveloped. The deficit peaks in the summer, when electricity demand exceeds 30 gigawatts. Production is expected to fall by more than 6 gigawatts during peak periods this year.
Iraq has long relied on gas and electricity imports from Iran to bridge its deficit, but this lifeline is beginning to shrink. In March 2025, the Trump administration allowed the sanctions waiver that had allowed Iraq to import electricity from Iran to expire, halting those imports and triggering emergency measures.
While the waiver allowing the import of Iranian gas remains in place, supplies have declined sharply. In early 2025, Iraq was receiving around 50 million cubic meters per day of Iranian gas, but by June, that figure had fallen to around 25 million cubic meters, according to government data.
The anticipated FSRU represents more than just a temporary solution; it will give Iraq its first access to international LNG markets and open a new, seamless supply channel.
From the United States’ perspective, Accelerate’s potential role as a supplier and operator presents an opportunity to strengthen strategic energy economic ties with Baghdad.
According to a Bloomberg report, with Iranian gas imports declining by about 25 million cubic meters per day, Iraq reported in early July a decrease in electricity generation capacity of about 3.8 gigawatts. link
