Iraq concludes an agreement with Iran to ensure no electricity cuts in the summer

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[size=52]Iraq concludes an agreement with Iran to ensure no electricity cuts in the summer[/size]

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[size=45]Iraq's Minister of Electricity said that his country has agreed to pay off $1.6 billion in debt to Iran by June 1 to secure a steady gas supply for electricity generation during the summer.[/size]
[size=45]This comes after a chronic underinvestment during decades of war and sanctions has left Iraq dependent on imports from its eastern neighbor for a third of its gas needs.[/size]
[size=45]But US sanctions on Iranian oil and gas have complicated Iraq's payments for imports, left it in heavy arrears and prompted Iran to respond by periodically closing the taps, according to "AFP", which was seen by Al-Arabiya.net.[/size]
[size=45]The result has led to power outages across much of the country, particularly during the summer, when temperatures routinely reach 52°C, driving up demand for refrigeration and air conditioning.[/size]
[size=45]"We reached an agreement on supplying sufficient quantities, as we agreed on 50 million cubic meters (per day) during the four hot summer months," Acting Electricity Minister Adel Karim told state television on Wednesday evening.[/size]
[size=45]He added that during the winter, Iraq will import between 10 million and 20 million cubic meters per day of Iranian gas.[/size]
[size=45]"They agreed to provide us with gas, but they have conditions, as they demand $1.6 billion," Karim said, adding that the payment would be made "by the beginning of June."[/size]
[size=45]The figure represents Iraq's arrears for 2020, which have yet to be settled due to the ambiguous payment method that Iraq would have to use to comply with the waiver of US sanctions imposed on Iran.[/size]
[size=45]Iraq is not allowed to simply hand over money to Iran, as the payments must be used to fund imports of food and medicine.[/size]
[size=45]Karim said that gas imports from Iran are currently flowing at a rate of 38 million cubic meters per day.[/size]
[size=45]The alternatives under consideration include linking the Turkish national grid to supply the city of Mosul with electricity, and a link to Kuwait and Saudi Arabia to help supply the south with energy.[/size]
[size=45]Karim said LNG imports from Qatar were also expected to start in the "next few months" but stressed that it was unlikely that an alternative source would replace Iranian gas soon.[/size]
[size=45]"In my humble opinion, we will rely on Iranian gas for the next 5 or 10 years," he added.[/size]
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