Iraqi authorities reveal negotiations with Saudi Arabia to buy electricity

2021-12-12 12:04

Shafaq News/ Iraqi Oil Minister Ihsan Ismail confirmed that Iraq is holding talks with Saudi Arabia to buy electricity.

Iraq has huge oil and gas reserves, and is OPEC's second-largest producer, but is facing a severe energy crisis due to decades of war, corruption, and a deteriorating infrastructure.

The Minister said in statements to journalists that the dialogue with Saudi Arabia and the Gulf is "part of securing and stabilizing the power production. So far, the issue is under discussion.”

The Iraqi official added that there is high-level coordination with the Gulf Cooperation Council, especially Saudi Arabia that is genuinely willing to help Iraq.

The Iraqi Minister of Oil said that the negotiations focus on pricing, indicating, "We received a certain price and we believe that it can be improved", noting that there are some criteria to determine the price, including the amount of imported power and the period during which Iraq will keep importing electricity.

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

Iraq's needs are expected to grow in the future, as the United Nations expects its population to double by 2050.

Iraq, with a population of 40 million, relies on Iran to supply about a third of its gas and electricity needs, as the decline in its infrastructure prevents it from achieving energy independence. Iraq owes Iran four billion dollars in gas supplies.

Iraq has also concluded agreements to start constructing power production plants through solar energy, and aspires to sign several contracts that would allow it to produce 7,500 megawatts by 2023, and 12,500 megawatts in the next phase, equivalent to more than 25% of the country's electricity needs, according to Ismail.

https://shafaq.com/en/Economy/Iraqi-authorities-reveal-negotiations-with-Saudi-Arabia-to-buy-electricity