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MEOG PIPELINES & TRANSPORT MEOG

Iran reduces gas flows to Iraq

IRAN/IRAQ IRAN has reduced gas flows to power stations in with Baghdad owing its neighbour more than
southern and central Iraq as the Islamic Republic $6bn for gas already provided, increasing the
struggles with domestic power and water crises. likelihood of power shortages across the country.
A statement from Iraq’s Ministry of Energy However, an agreement was reached days later
(MoE) said that gas supplies had fallen by 19mn by Iranian energy minister Reza Ardakanian
cubic metres (mcm) per day. and Iraqi counterpart Majid Mahdi for flows to
“The rates of Iranian gas being supplied to the resume at normal rates.
production stations in the central regions and Ardakanian told state news agency IRNA:
Baghdad have been reduced from 34mn cubic “good agreements were reached with the Iraqi
metres to 20mn cubic metres per day,” it said, officials to withdraw Iranian funds from Iraq
adding that supplies to southern regions had to pay for the purchase of the coronavirus vac-
dropped from 17mcm to 12mcm per day. cine from Europe using Iran’s existing financial
The MoE noted that the country has lost resources in Iraq.” This followed the announce-
around 1,000 MW of electricity production as ment by Tehran that it had been given the
a result. go-ahead by American authorities to transfer
Iraq is understood to generate around 19,000- $244mn to buy coronavirus vaccines from the
21,000 MW, far short of the required level of WHO’s COVAX alliance.
30,000 MW. In addition to the cross-border gas The gas deal was reached after Iraq had paid
flows, Iraq imports around 1,200 MW of elec- an “appreciable portion” of the debt to Iranian
tricity from Iran. state gas and electricity companies, according to
Exacerbating the situation, transmission Ardakanian.
lines in the Iraqi governorates of Diyala, Kirkuk He added: “With these new arrangements,
and Salah ad Din have been targeted by attacks we hope to use our existing financial resources
understood to have been carried out by Daesh in Iraq more quickly to purchase basic goods
militants. and other needed items in the near future.”
The MoE said that “great and high coordina- Meanwhile Baghdad said on December 21 that
tion” had been held between the oil and energy it would export 700,000 tonnes of barley to Iran
ministries of the neighbours to compensate for for $125 per tonne as part of the as part of the
the reduced volumes. repayment plan with cash and other goods to be
Gas supplies to Iraq were cut in late December used in a partial barter arrangement.™

Week 30 28•July•2021 www. NEWSBASE .com P7