Iran's gas exports to Iraq at previous level of 50mn bpd

TEHRAN, Dec. 30 (MNA) – A spokesman for the Iraqi Ministry of Electricity announced that from today, Iran will increase the volume of its gas exports to this country to the previous level of 50 million cubic meters per day.

Iran will resume normal gas flows to Iraq on Wednesday after reaching an agreement with Iraq on Tuesday over unpaid bills, a spokesman for Iraq’s electricity ministry was quoted as saying by Reuters.

Iran’s state gas company said on Monday it had cut supplies to neighboring Iraq over arrears of more than $6 billion. The Iraqi electricity ministry said the cuts placed Baghdad and other cities at risk of serious power shortages.

An agreement was reached during a meeting between Iranian Energy Minister Reza Ardakanian, who is visiting Baghdad, and Iraqi counterpart Majid Mahdi to resume normal gas flow rates as of Wednesday evening, spokesman Ahmed Moussa told Reuters.

Iran’s energy minister also met with Prime Minister Mustafa al-Kadhimi and conveyed the Iranian government’s pledge to “urgently resume gas pumping which had been slashed recently after technical problems”, a statement from the prime minister’s office cited Iran’s minister as saying without giving details.

Iraq said on Dec. 21 it was ready to export 700,000 tonnes of barley to Iran at a price of $125 per tonne as part of payments owed by the Iraqi government to Iran.

An Iraqi trade ministry official said on Tuesday the barley export shipments to Iran, in addition to other goods, will be used to pay back part of the delayed gas debts.

Iran has been unable to access billions of dollars in assets in several countries due to US sanctions.

HJ/FNA13991010000250

News Code 167836

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