The Electricity and Energy Committee in the Iraqi Parliament stated on Friday that the settlement of financial dues for Iranian gas exports has become a political problem involving Washington, Tehran, and Baghdad. While emphasizing the absence of an immediate alternative to replace these exports, the committee called for a swift resolution to this political obstacle, as Iranian gas remains the quickest and most suitable in terms of quality and price for Iraq.
Dakhil Radi, a member of the committee, told Shafaq News Agency, "Current electricity production ranges from 18.5 to 19 thousand megawatts per day, but there are obstacles in delivering the financial dues for Iranian gas through the Iraqi Bank for Trade, and this is a major problem."
He explained, "Iran supplies Iraq with the required quantity of gas at a price set by the Ministry of Electricity in the Iraqi Bank for Trade, but the problem lies in the transfer process, as the amounts do not reach Iran," pointing out that "Iranian gas has become a political issue between the United States, Iran, and Iraq."
Radi affirmed that "Iraq needs between 28,000 to 30,000 megawatts, but if Iranian gas is available, it is expected to increase production to 22,000 to 23,000 megawatts, which would sufficiently cover the needs of all provinces, providing electricity for 16 to 18 hours daily." He expressed hope for a near-term solution to the gas issue.
The member of the Electricity Committee called for "a political and swift resolution to the Iranian gas problem, given the lack of an immediate alternative to Iranian gas for the country. All countries that supply Iraq with gas do so through floating facilities, whereas Iranian gas arrives through pipelines, making it the quickest and most suitable option in terms of quality and price."
On another note, Radi highlighted "the existence of memoranda of understanding and contracts with companies in multiple Iraqi provinces regarding solar energy investment and purchasing energy from neighboring countries." He stated that the government is making efforts to sustain electricity provision to all provinces, even if for 16 to 18 hours of daily operation.
Radi confirmed that "the power stations, which were under maintenance, have been completed and have entered service, providing the national grid with electricity, as they did before. Recently, new power stations have been inaugurated and have joined the national system."
He further emphasized that "the Prime Minister has a special interest in the energy sector, both in terms of renewable energy and gas and steam power stations, as well as the purchase of energy, transmission, and distribution lines."
Iran's Minister of Oil, Javad Owji, announced on Saturday, May 13, the extension of two contracts related to Iranian gas exports to power stations in the capital, Baghdad, and Basra province, based on an agreement between Iran and Iraq.
Iraq heavily relies on Iranian gas imports to feed its electricity grid, generating around 14,000 megawatts from the domestic grid in addition to nearly 4,000 megawatts through gas and energy imports.
The Iraqis account for more than 80% of Iran's electricity exports in recent years, according to previous data from the Iranian Ministry of Energy.
Iraq has been suffering from a chronic electricity shortage for decades due to blockades and successive wars. The population has long protested against frequent power outages, especially during the summer, when temperatures can reach up to 50 degrees Celsius.
Iraq is currently in talks with Persian Gulf countries, particularly Saudi Arabia, to import electricity through connecting its grid with the Gulf system. Previously, Iraq relied solely on Iran for imports of 1,200 megawatts of electricity and gas fuel to power its domestic power plants.
Additionally, Iraq is also planning to import electricity from Jordan and Turkey, as part of its efforts to mitigate the shortage until new power plants capable of meeting domestic consumption are constructed.