Iraq’s Electricity Ministry announced the return of energy production stability following the implementation of the Iraqi-Iranian agreement regarding the exchange of Iraqi crude oil for Iranian gas.
In a statement on Friday, the ministry confirmed that energy production has stabilized again at more than 24,000 megawatts after production was raised overnight.
The ministry said an increase in the flow of natural gas from Iran to Iraq’s southern region, which was agreed upon as part of a barter deal to exchange crude oil for natural gas, has helped in this regard.
Moreover, Iraq has other stations ready for operation, which can add more power to the electricity system if gas supplies are available, the ministry added.
The Iraqi government’s agreement with Iran was reportedly discussed months ago. Baghdad hesitated in implementing for fear of Washington’s rejection given its economic sanctions on Tehran.
With Iraq grappling with a severe heatwave and temperatures nearing 50°C in some cities, especially in southern regions, public frustration grew due to perceived empty government promises that are made every year.
This prompted Prime Minister Mohammed Shia Al-Sudani to announce that an agreement had been reached with Iran.
Simultaneously with the signing of the agreement with Iran, Iraq also entered a massive deal worth over $27 billion with the French oil major TotalEnergies regarding energy, oil, and gas.
While the agreement with the French company was welcomed by Washington, the US Department of State affirmed its commitment to continue implementing all the sanctions imposed on Iran under President Joe Biden’s administration.
An anonymous spokesperson from the department stressed: “The fundamentals of our policy remain unchanged, which is that Iran can only access the revenues from Iraqi energy purchases for humanitarian and other non-sanctioned transactions.”
The spokesperson emphasized that the US firmly supports Iraq’s journey toward energy self-reliance and the government’s endeavors to enhance essential services for its people. They underscored that “any claim that US sanctions on Iran impede gas supplies to Iraq is false.”