Iraq’s Electricity Ministry and the National Iranian Gas Co (NIGC) on 27 March signed a five-year agreement for the supply of up to 50mn m3/d (1.8bn cfd) of Iranian gas. The deal will replace an existing deal under which contractual volumes were theoretically set at 70mn m3/d (2.5bn cfd) for summer and 45mn m3/d (1.6bn cfd) for winter, but in reality volumes never reached such heights.

Iraq did not disclose the seasonality of the new deal, but crucially says supplies will depend on “the [Iraqi] grid’s requirements.” Iranian exports to Iraq have been frequently halted in recent years due to domestic shortages (MEES, 19 January), this has worsened supply reliability as the seasonality of the two countries’ demand is becoming highly correlated. Baghdad does not need US waivers to import Iranian gas, as it does for electricity imports which are coming under increasing scrutiny from US lawmakers (MEES, 29 March), but payment remains hindered by sanctions. (CONTINUED - 158 WORDS)