TEHRAN - The head of the National Iranian Gas Company (NIGC) announced the start of negotiations with Iraq for the extension of a gas export deal between the two countries, Shana reported.

"Since our first [gas] export contract to Baghdad will expire next year, our negotiations with Iraq regarding the continuation of exports to this country have begun and the first part of the negotiations is regarding the previous contract," Majid Chegeni said in a televised interview.

He underlined the good performance of his company in the field of gas export over the past year, stating that the 13th administration since taking office, has been very active in the field of energy diplomacy, especially in gas exports.

The deputy oil minister for gas affairs stated that the Iraqi side has been calling for the extension of the gas export contract and Iran has a positive attitude in this regard.

Referring to the development of energy relations with neighboring countries, Chegeni emphasized: “Iraq needs energy, especially gas, and we are trying to meet this need by extending the contract with this country.”

Iraq relies on Iran for natural gas which generates as much as 45 percent of its 14,000 megawatts (MW) of electricity consumed daily. Iran transmits another 1,000 MW directly, making itself an indispensable energy source for its Arab neighbor.

The country currently imports over 20 million cubic meters of natural gas from Iran on a daily basis, while it needs 55-60 million cubic meters of the energy carrier.

Back in October, Head of the NIGC Dispatching Department Mohammadreza Joulaei announced that his company was considering an increase in gas exports to Iraq in the current Iranian calendar year (ends on March 20, 2023).

Joulaei made the remarks in a meeting with senior officials of the Iraqi Ministry of Electricity that was held in Isfahan, central Iran on October 10.

“Our relationship with Iraq is a strategic one,” Joulaei said in the meeting.

Referring to the negotiations made in the meeting, the official said: “Annual and quarterly meetings are held with the officials of the Iraqi Electricity Ministry to discuss the gas export contract with this country, so technical and operational issues of this contract were also discussed in this meeting.”

Referring to the beginning of the cold season in Iran and the increase in gas consumption in the domestic sector, the NIGC official stated: “Considering the amount of consumption in the last six months and the demand increase in the next six months, the necessary technical and operational investigations have been carried out so that we do not have any problems for exports and the gas export is going to be carried out according to the agreement made with the Iraqi parties.”

Ahmed Musa, the spokesman for the Iraqi Ministry of Electricity, said that his country paid all its debts for gas imports to Iran, adding an Iraqi delegation was visiting Iran to discuss an increase in gas imports.

In an interview with Iraqi News Agency (INA), Mousa said that his country imports 20 million cubic meters of gas from Iran every day and that Iraq needs more gas now.

The official added that his country has no debts to Iran over the gas imports, adding: "Negotiations, meetings, and visits to Iran are ongoing with the aim of coordination on an increase in gas imports."

EF/MA