Iraq has made a signed agreement with its ex- Gulf War rival Iran to trade in Iranian natural gas to provide for its power plants near Baghdad.
This action has been taken to solve the country’s electricity shortage as told by an Iraqi government spokesman recently. This deal is for the period of four years and was signed in Baghdad.
Natural gas import deal
Around 850 million cubic feet a day of Iranian natural gas at international prices will be used to provide for the two power plants in a north- eastern suburb of Baghdad to produce 2,500 megawatts, said a spokesman for the Iraqi department of electricity.
Mr Mussab al-Mudaris from the Iraqi Ministry said the gas will be fed through a pipeline and the work is likely to be concluded in two months time. The pipeline is expected to passage to Iraq from Iran through Diayla province east of the Iraqi capital of Baghdad. He added that most of the work on the pipeline has been concluded.
The Iraqi electricity minister Kareem al-Jumaili and Iranian oil minister Rostam Qasemi signed the deal in Baghdad.
Iran now has access to a new business prospect with this deal due to an additional market for them as they have put effort under international economic sanctions imposed on the Islamic state for pursuing a nuclear program.
Iraq has this innovative and futuristic program to expand its gas fields, is unable to turn out enough gas to provide for its power stations. The country can only produce only half of its power requirements which is approximately at 15,000 megawatts. Iraq in importing around 1,000 megawatts from Iran.
Power outages have provoked anti-government protests a lot more in the last few weeks in Shiite-dominated governorates in southern Iraq. During the summer season the high temperatures are unbearable touching over 50 Celsius.
The ruler and president in 1980s, Saddam Hussain, Iraq and Iran have been in war for eight after his government was taken down in 2003 by U.S. forces, Baghdad and Tehran are now collaborating good relations under the Shiite-led government of Prime Minister Nouri al-Maliki . There have been apprehensions from his opponents, Washington and its Arab allies, as well as Saudi Arabia, over Iran’s increasing authority in the region.