Iraq, Iran sign power deal

Power as in electricity.

Reuters

Iraq's electricity ministry said on Sunday it has signed an initial agreement with Iran to import natural gas for power generation.

Under the memorandum of understanding between the two neighbours, Iran will install a pipeline through Iraq and supply it with gas that would be used to feed two power plants in Baghdad, the electricity ministry said.

Iraq will buy 25 million cubic metres of gas each day from Iran under the five-year deal, according to international prices, which would generate 2,500 megawatts.

The gas pipeline will pass through Iraq's Mansuriyah gas field near the Iranian border in volatile Diyala province. The gas would supply a power plant in Sadr City in northern Baghdad, and another plant in the northern outskirts of Baghdad. The pipeline will be completed in 18 months.

I'm puzzled that Iraq is willing to make itself so dependent on Iran. You'll remember how Russia has held up with its customers dependent on Russian pipelines. Perhaps this is an indication of how desperately troubled electricity production is in Iraq. I would have thought (although it's not cutting edge technology) that Iraq would build oil-fired generation plants instead.