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FINANCIAL NEWS
Iraq, Iran sign natural gas agreement
24 May 2011
(MENAFN) Iraq’s Electricity spokesman, Mussab AL-Mudaris, said that in order to reduce power cuts in the country, the ministry signed an agreement with Iran to import natural gas which would deepen the economic ties between the two countries, reported Arab News.
Al-Mudaris added that although the government spent billions to repair power stations and lines, shutdown in electricity would still be common, adding that the five year agreement with Iran would allow Iraq to buy 25 million cubic meters of natural gas on a daily basis to supply two power plants in northeastern suburbs of the capital Baghdad.
He also said that more than half of the country’s imported electricity, around 1,000 megawatts, came from Iran and this amount could be increased to 75 percent next month. Moreover, the gas would be transferred through a pipeline which would be completed by the end of next year, but the agreement would still need the approval of Iraq’s Cabinet and parliament.
It is worth noting that the deal for Iran, which has the world’s second largest gas reserves, would add another important market as the country struggles under international economic sanctions from the standoff over its nuclear program.
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