Saturday, June 22, 2024

Baghdad

Iraq, Turkmenistan agree on gas deal

 Iraq, Turkmenistan agree on gas deal

A liquefied natural gas carrier loading in Qatar’s Ras Laffan harbor near Doha. Photo: DPA

Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil announced on Thursday that an agreement has been reached to import gas from Turkmenistan to supply power plants in Iraq with the required fuel.

“It has been agreed on to import quantities of gas from Turkmenistan to meet part of the needs of power plants,” Undersecretary for Gas Affairs, Izzat Saber, said.

“A memorandum of cooperation in this regard is expected to be signed before the end of 2023. It includes the quantities and the mechanisms both countries will adopt,” Saber stated following a meeting of a government delegation with officials in the gas sector in Turkmenistan.

The Iraqi Minister of Electricity, Ziyad Ali Fadel, revealed during his meeting with members of the parliamentary committee on electricity and energy in July that two delegations will visit Qatar and Turkmenistan to discuss possible deals to import gas.

Iraq imports between 33 and 40 percent of its needs for gas and electricity from Iran.

Energy is very important for Iraq, particularly in the scorching summer when temperatures reach 50 degrees Celsius (122 degrees Fahrenheit) and energy consumption reaches its peak.

Iraq has been facing difficulties paying for gas imports from Iran due to US sanctions that only allow Iran to get funds to buy non-sanctioned goods such as food and medicine.

The US sanctions are forcing Iraq, the second-largest producer in OPEC, to reduce its dependence on Iranian gas.

Although Iraq heavily relies on gas imports from Iran, it recently invested in many projects to start taking advantage of flared gas and using renewable energy to generate electricity.