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Iran to 'urgently resume' gas shipments to Iraq following weeks of cutbacks

Tehran has been reducing its gas exports to Baghdad due to unpaid bills, worsening an already critical energy situation.

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An employee turns a valve at the Nahr Bin Omar natural gas field, north of the southern Iraqi port of Basra, on April 21, 2020. — HUSSEIN FALEH/AFP via Getty Images

Iran pledged to “urgently resume pumping Iranian gas” to Iraq following reductions in gas shipments over unpaid bills, according to an Iranian energy official on Tuesday. 

The agreement was reached during a meeting between an Iranian delegation led by Energy Minister Reza Ardakanian and Iraqi Prime Minister Mustafa al-Kadhimi. The move seeks to avoid severe power outages in Baghdad and other major cities, as over one-third of the gas used to generate power in Iraq in 2019 was imported from Iran. 

Iran's state gas company said on Monday it had cut supplies over an outstanding balance of $6 billion. Iraqi authorities had paid back an "appreciable portion" of the debt, Ardakanian told state news agency IRNA.

Iranian gas exports to Iraq began reducing two weeks ago, slashing 5 million cubic meters a day after Iraq fell behind on payments, Iraqi Electricity Ministry spokesperson Ahmed Moussa told Reuters.

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