BAKU, Azerbaijan, February 12. Iran can't export 20 bcm of gas to Iraq annually, spokesperson of the Iranian Oil, Gas and Petrochemical Products Exporters' Union Hamid Hosseini told reporters, Trend reports.
According to him, Iraq is currently in urgent need of Iranian gas, however, Iran does not have additional gas for export as it needs it for domestic consumption.
Hosseini pointed out that recently, the US has announced the cancellation of the exemption that allowed Iraq to pay for Iranian gas imports, meaning Iran will not be able to receive payments for the gas it exports to Iraq.
He explained that there are two issues in this situation, the first of which is that Iran’s gas exports to Iraq are already on the sanctions list, and there is a gas exchange agreement between Iran and Iraq.
Under this agreement, Iran is obligated to export a certain amount of gas to Iraq, however, under these circumstances, exporting gas may not seem practical for Iran, the official pointed out.
Besides, Hosseini mentioned that the second issue is Iraq’s severe need for Iranian gas.
The spokesperson emphasized that Iraq’s Prime Minister Mohammed Shia' Al Sudani has stated that Iraq will need Iranian gas until 2028 and will continue importing it.
The Iranian official also noted that plans are underway to meet Iraq's energy needs by this year.
'' Meanwhile, Iraq declared that recently, due to a halt in gas imports from Iran, it has been unable to produce 8,000 megawatts of electricity, and as a result, it has had to rely on diesel, sulfur, or mazut, increasing air pollution in the country,'' Hosseini clarified.
"It seems that in the current period, the Iraqi government will try to extend the exemption related to importing gas from Iran through discussions with the US," he remarked.
In addition, the official further added that regarding the gas export contract between Iran and Turkmenistan through Iran to Iraq, the agreement has been signed between the three countries, but the process has not yet started due to Turkmenistan's strict conditions.
To note, during the winter season, Iran’s gas consumption reaches its peak (sometimes up to 850 million cubic meters daily), making it impossible for Iran to export gas to other countries.
In July 2017, an agreement was signed between Iran and Iraq for the export of Iranian gas. As a result, 52 billion cubic meters of gas worth $15 billion have been exported to Iraq. This agreement was extended for five years on March 27, 2024. Under the agreement, Iran exports 50 million cubic meters of gas to Iraq daily.
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