Iraq signs a contract with Iran to import gas for 5 years
A natural gas refinery at the South Pars gas field in Iran. Photo: AP
Baghdad (IraqiNews.com) – The Iraqi Ministry of Electricity announced on Wednesday that a new five-year gas import contract had been signed with Iran, indicating that the volume of gas imports would reach 50 million cubic meters per day.
The Iraqi Ministry of Electricity mentioned in a statement that the quantity will vary according to the requirements of the national grid, the Iraqi News Agency (INA) reported.
The statement elaborated that the step aims to keep pace with the rising demand for electricity until the national gas fields are rehabilitated.
In exchange for gas imports to Iraq to run electrical power plants, the US administration agreed earlier in March to grant Baghdad new exemptions to pay Iran’s financial obligations.
Iran began exporting gas to Iraq in 2017. According to the contract concluded between the two sides, Iran supplies Iraq with an average of 25 million cubic meters of gas per day.
During the past years, due to the severe gas shortage in the winter, Iran reduced its gas exports to Iraq, and in some weeks it completely stopped the flow of Iranian gas, causing an electricity crisis in Iraq.
About a third of Iraq’s electricity is produced by thermal power plants, which operate on gas imported from Iran.