Iraq pays off all debts on Iranian gas imports
The South Pars gas field facilities in Assaluyeh, Iran. Photo: AFP
Baghdad (IraqiNews.com) – The Iranian Deputy Oil Minister, Majid Chegeni, stated that the Iraqi Ministry of Electricity has paid Iran all debts related to gas imports from Iran, the Islamic Republic News Agency (IRNA) reported.
Chegeni, who also heads the National Iranian Gas Company (NIGC), told reporters on Sunday that the Iraqi Ministry of Electricity has paid all its gas arrears to Iran, and this debt is now zero, IRNA mentioned.
“But sometimes there are problems transferring money from the Trade Bank of Iraq (TBI) to Iran,” the Iranian official said.
On the other side, Chegeni noted that Turkey had called on Iran to extend a gas supply deal to the country, adding that the two countries are still in talks in this regard.
Iraq agreed two weeks ago to pay $2.76 billion in gas and electricity debts to Iran after the United States granted an exemption from sanctions imposed on Iran.
Talks between the Iraqi Foreign Minister, Fuad Hussein, and US Secretary of State, Antony J. Blinken, during the Global Coalition to Defeat ISIS Ministerial Opening Session held in Riyadh, led to an arrangement regarding financial dues between Iraq and Iran, Sky News Arabia reported.
The Iranian Minister of Oil mentioned last May that the two countries agreed to extend two contracts to supply two main power plants in Baghdad and Basra with gas from Iran for five years, according to Mehr News Agency.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of the associated gas being flared in oil facilities in the country.