Saudi Arabia and Iraq signed a memorandum of understanding Jan. 25 to connect their electricity grids, as OPEC's two largest oil producers work together to help reduce Baghdad's dependence on Iranian energy imports.
Saudi Arabia will aim to "achieve optimal investment" in the electrical connection with Iraq, the kingdoms Energy Minister Prince Abdulaziz bin Salman said during a virtual signing ceremony.
Iraqi Electricity Minister Adel Karim said the link-up would be completed within two years, according to the state-run Iraqi News Agency, though no details of how the grids will be connected nor how much electricity will flow into Iraq were released.
Iraq is under increasing pressure from the US to wean itself off electricity and gas imports from Iran, which has been subject to US sanctions since 2018. The US has issued Iraq a series of sanctions waivers to continue importing Iranian energy but has warned the waivers could end if Baghdad does not make serious progress toward finding other fuel and power sources.