Iran Cuts Gas Export to Iraq
- January 8, 2021
- Posted by: Quatro Strategies
- Category: Energy
Iran has cut its export of natural gas to Iraq and warned for further cutbacks over unpaid bills. The decision will increase the likelihood of more electricity shortages in Baghdad and other major Iraqi cities. Iraq has been receiving 5 million cubic meters a day since Iran cut its daily exports from 50 million cubic meters Iraq’s Electricity Ministry revealed.
The Iranian government told Iraq it would reduce supplies to 3 million cubic meters, but has not yet implemented the move. Iran started cutting exports to its neighbor after Iraq fell behind on its gas payments. Iraq owes around $2.7 billion to Iran.
Iranian Energy Minister Reza Ardakanian will meet Iraqi officials in Baghdad to try and solve the issue. While electricity production has dropped by around 7 GWs in Iraq, major cities have been hit by electricity shortages.
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