Iran Extends Gas Export Contracts with Iraq to Address Electricity Shortages

Iranian Oil Minister Javad Auchi announced on Saturday the extension of two gas export contracts between Iran and Iraq. These contracts pertain to supplying gas to power stations in Baghdad and Basra and have been extended for five years.

Auchi announced this during his official visit to Baghdad, where he met with Iraqi Minister of Electricity Ziyad Ali Fadel.

The primary focus of the meeting between the two ministers was the cooperation between Iran and Iraq in the oil, gas, and petrochemical fields. They stressed the importance of exchanging information, exploring joint oil fields, and developing these fields for the mutual benefit of both countries. The memorandum of cooperation also includes plans to establish oil and gas pipelines and enhance Iraqi oil refineries.

Iraq has been grappling with electricity shortages for an extended period, resulting in frequent power outages, particularly during the hot summer months. To mitigate this issue, the country has heavily relied on electricity imports from Iran, receiving 1,200 megawatts of power and gas fuel for local power stations. However, Iraq is now seeking to diversify its energy sources and has been engaging in discussions with Gulf countries such as Saudi Arabia, Jordan, and Turkey for potential electricity imports.

The extension of the gas export contracts with Iran is expected to contribute significantly to Iraq’s efforts to address its electricity shortage until new power stations are constructed to meet domestic consumption. In addition, this agreement ensures a continued and stable supply of gas to power stations in Baghdad and Basra, thus helping stabilize the electricity situation in these areas and improve the overall energy infrastructure of Iraq.