Economy News – Follow-up
The Ministry of Electricity is currently finalizing the development and financial arrangements with the company designated to mediate the supply of Turkmen gas to the country.
Last October, an agreement was reached between the Ministry of Electricity and Turkmenistan for the supply of gas to Iraq, which will cover approximately 50 percent of the operational requirements for the power stations. The logistics of gas transportation will be managed through a Swiss firm.
Ministry spokesperson Ahmed Moussa stated that the ministry is actively working on finalizing the development and financial processes related to the intermediary company’s role in transporting Turkmen gas to Iraq. This initiative is part of broader efforts to expedite the contract implementation and mitigate the gas shortages currently hindering the operation of electricity generation facilities that rely on Iranian gas.
He further noted that certain power stations in Baghdad and the Middle Euphrates are operating below capacity, with some units halted due to gas shortages. The substitution of gas with kerosene has not proven to be effective in meeting energy demands.
Moussa highlighted that the ministry faces a shortfall of approximately 8,000 megawatts, negatively affecting the electricity supply across various governorates.
The agreement with Turkmenistan is expected to provide up to 20 million cubic meters of gas each day. Furthermore, the Iraqi Bank for Trade (TBI) is working on establishing a suitable mechanism for the financial transactions necessary for finalizing the contract.
Additionally, the government is committed to utilizing domestic gas resources and reducing reliance on imports. Plans are underway to construct a liquid gas platform at the country’s ports.
Moussa emphasized the pursuit of alternative energy projects to prepare for potential future shortages in imported gas. These measures include developing solar energy initiatives, implementing combined cycle power plants, enhancing electrical connections with neighboring countries, recycling waste for electricity production, and expanding steam generation facilities.
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