Iraq requires Iran’s gas for years to feed its power plants, as Iran’s gas is suitable for Iraq and its price is reasonable, Iraqi Minister of Electricity Adel Karim said.
In order to address power electricity issues in the country, Iraq has been in talks with other countries too but has not struck a deal with any of them yet as creating a power grid connection with Arab littoral states of the Persian Gulf would be very costly, he added.
“The Iraqi government does not accept the prices quoted by Arab countries,” the Iraqi minister was quoted as saying by IRNA.
Most Iraqi power plants depend on Iran’s gas and Iran has been the main supplier of energy to its western neighbor for several years.
A US State Department official said late March that the Biden administration had granted another 120-day waiver to allow Iraq to pay for electricity imports from Iran.
“The waiver ensures that Iraq is able to meet its short-term energy needs while it takes steps to reduce its dependence on Iranian energy imports,” the spokesperson told Al Arabiya English.
Washington has routinely provided sanctions waivers to Iraq since sanctions were reimposed on Iran. However, the Trump administration shortened the time period of the waivers as the US pressed Baghdad to reduce the use of Iranian energy.