The most prominent of which is the pricing.. Advanced negotiations between Iraq and Saudi Arabia over electricity revealed

  •  Time: 12/12/2021 21:21:39 
  •  Reading: 728 times 
The most prominent of which is the pricing.. Advanced negotiations between Iraq and Saudi Arabia over electricity revealed

{Economic: Al Furat News} Iraq, which is facing a severe energy crisis, is holding talks with Saudi Arabia in order to purchase electric power, according to what was confirmed, Sunday, by the Minister of Oil, Ihsan Ismail. 

Iraq has huge reserves of oil and gas, and is the second largest producer in the Organization of Petroleum Exporting Countries (OPEC), but it is facing an acute energy crisis due to decades of war, corruption and deteriorating infrastructure, and suffers from rationing of the electric current, which increases discontent in the country.

The minister said, during a meeting with journalists, that “the dialogue with the Kingdom of Saudi Arabia and the Gulf connection are within the axis of securing and stabilizing the production of electric energy. So far, the issue is under discussion.”

He added, “There is a high response and coordination from the brothers in the Gulf Cooperation Council, especially the Kingdom of Saudi Arabia, and there is a desire to help Iraq,” according to what was reported by “AFP.”

He stated that the negotiations focus especially on the price, explaining, “We have received a price and we believe that it can be improved.” 

He talked about several criteria related to how the price is determined, especially the “quantity of electrical energy to be imported”, and the duration of these imports, whether “over 365 days or six months during the summer and the height of winter.”

Iraq currently produces 15,000 megawatts of electricity, much less than the 30,000 megawatts it needs to meet its peak summer needs each year, according to the minister.

It is expected that the needs will increase in the future in a country whose population the United Nations expects to double by 2050.

Iraq, with a population of 40 million, depends on Iran for about a third of its gas and electricity supplies, as the decline in its infrastructure prevents it from achieving energy independence.

Iraq owes Iran $4 billion in gas supplies, but the latter has cut off gas and electricity from Iraq more than once, to push it to pay its dues.

Iraq has also concluded agreements to start constructing electricity production plants through solar energy. He aspires to sign several contracts that will allow him to produce 7,500 megawatts by 2023, and 12,500 megawatts in the next stage, which is equivalent to more than 25% of the country’s electricity needs, according to the Minister of Oil.


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