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Deep Data: GCC Electricity and Iraq’s Reliance on Iran

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Deep Data: GCC Electricity and Iraq’s Reliance on Iran

In connection with the recent Arab summit in Jeddah, Iraq and Saudi Arabia are forging ahead with efforts to connect their electricity grids.

The plan revolves around a new power line between the two neighbors with a capacity of 1 gigawatt (GW). Separately, Iraq and the Gulf Interconnection Authority (GCCIA) are advancing a scheme to power southern Iraq.

While Iraq has long been under pressure from the US and some Arab states to reduce reliance on energy imports from Iran, informed sources in Baghdad characterize the shifts underway as a win-win for all sides-pointing to burgeoning domestic demand in Iran, and the possibilities offered by a new regional electricity market.

The full report can be viewed here (registration required).

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Iraq Diversifies, Expands Sources of Energy and Electricity

By Al Monitor staff. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq diversifies, expands sources of energy and electricity

Iraq is looking to Arab partners to help expand energy production and imports to meet summer demand.

Click here to read the full article.

The post Iraq Diversifies, Expands Sources of Energy and Electricity first appeared on Iraq Business News.

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PM announces new Ministry of Electricity and Alternative Energy

By John Lee.

The Iraqi Prime Minister has announced that the Ministry of Electricity is to be renamed the “Ministry of Electricity and Alternative Energy“.

At a press conference in Baghdad, Mustafa al-Kadhimi (pictured) said it is unreasonable to build gas power stations when there is not enough gas available, so the new ministry will actively seek alternative power sources.

In the past, he said, power stations were built, “in an absurd manner, without planning and without knowledge.”

He also referred to the country’s electrical interconnection projects with the Gulf states, Saudi Arabia, Turkey, Jordan and Egypt, which will provide power until Iraq reaches self-sufficiency.

Addressing the annual shortage of electricity during the very hot summer season, he said that last year’s production of 21,000 MW will not be achieved this year, due to the reduction in gas supply from Iran.

(Source: Govt of Iraq)

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Iran Reduces Gas Supply to Iraq, as Iraq Misses Payment

By John Lee.

Iran has reduced its gas supply to Iraq by 5 million cubic meters per day, causing a reduction in electricity production, according to a statement on Wednesday from Iraq’s Ministry of Electricity.

The Iranian government had demanded payment of debts relating to gas supply, which AFP says totals $1.6 billion and dates from 2020, by the end of May. 

The Ministry blames the non-payment on the delay in approving the general budget, and “the search for an alternative solution to the Food Security Law.“

Iraq exported a record $11.436-billion worth of oil in May.

(Sources: Ministry of Electricity, AFP)

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Iraqi Working Group to coordinate with Iran on Gas Supply

By John Lee

Iraqi Prime Minister Mustafa al-Kadhimi has ordered that a working team from the Ministry of Electricity travel to Iran to solve problems related to the supplying of gas.

At a meeting with the Electricity Ministry and senior officials on Sunday, there was discussion about the high electricity demand in summer, and how to remove obstacles relating to the production and distribution of electricity.

The meeting addressed plans to protect electric pylons from sabotage, and the status of the rehabilitation work on the Baghdad / Baiji 400KV line.

(Source: Office of the Iraqi Prime Minister)

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Iran Ready to Extend Gas Export Deal with Iraq

By John Lee.

The CEO of the National Iranian Gas Company (NIGC) has said Iran is ready to extend its gas export deal with Iraq.

Majid Chegeni, who is also the Deputy Minister of Petroleum for Gas Affairs, said:

“Our relationship with Iraq is strategic and apart from economic relations, we have deep cultural and religious relations that are very important. The more our cooperation, especially in the field of energy, the deeper and more objective these relations will be.”

(Source: NIGC)

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Iran “Appoints Special Envoy” on Iraq Petroleum Issues

By John Lee.

Iran’s has reportedly appointed a special representative for petroleum issues involving Iraq.

According to ABNA24, Seyyed Abbas Beheshti will coordinate with the National Iranian Gas Company (NIGC) and the Central Bank of Iran to accelerate payments of arrears.

It adds that Iraq owes Iran nearly $6 billion for imports of natural gas to produce electricity.

(Source: ABNA24)

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Iran Slashes Natural Gas Exports to Iraq

By John Lee.

An Iranian official has said that Iran’s natural gas (methane) exports to Iraq have been reduced, but not because of arrears owed by Iraq.

Mohammad Reza Julaei , the Dispatching Director of the National Iranian Gas Company (NIGC), told Shana that exports have been reduced by 38 million cubic meters per day; they were believed to be running about 40 to 45 million cubic meters per day previously.

But he said that this was done based on an agreement and with prior notice, and has “nothing to do with [Iraq’s] arrears to Iran.”

He added, however, that the need to settle the debts is still on the agenda.

(Source: Shana)

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Amid Iranian Gas Shortage, Iraq searches for Alternatives

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Amid Iranian gas shortage, Iraq searches for alternatives

Iran’s dilapidated gas infrastructure has limited its transfers to Iraq, adding to Iraq’s own energy crisis.

Click here to read the full story.

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Iraqi, Syrian Oil Ministers discuss Gas Imports

By Al-Monitor staff. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraqi, Syrian oil ministers discuss gas imports

The Iraqi and Syrian oil ministers talked about the possibility of transporting Egyptian gas to Iraq through Syria during a meeting in Baghdad.

Click here to read the full story.

The post Iraqi, Syrian Oil Ministers discuss Gas Imports first appeared on Iraq Business News.