Iran finds 'positive results' after natural gas talks with Iraq

Iran has reached "positive results" in how much it's owed from Iraq for past natural gas exports and will "soon" reach a settlement on the debt along with future gas exports to Iraq, Iran's oil minister Mohsen Paknejad said Aug. 2 after a meeting with Iraq's electricity minister Ziyad Ali Fadhil.

"We will soon see the settlement of both the quantity of gas exports to Iraq and reception of gas debts," Paknejad said, as reported by Iran's oil ministry news service Shana. As for the amount of exports, "we could reach a conclusion," he said. As for the amount Iraq owes Iran, the parties "reached positive results," he said. The amount owed was not provided in the statement.

Iraq's electricity ministry did not mention any agreements in a statement about Fadhil's visit to Tehran on Aug. 1. His visit came "at a time when Iraq is witnessing a severe heat wave, one of the harshest this summer, with the approach of the Arbaeen pilgrimage, which requires strengthening the stability of the electrical system and securing its fuel needs to ensure the continuity of service for citizens and visitors alike."

Iran reduced its gas exports to Iraq since May, according to the Iraqi statement, forcing several Iraqi power plants to shut. Supplies were cut to 25 million cu m/day from contracted volumes exceeding 55 million cu m/day. Iran has previously cut supplies to Iraq to meet its own domestic demand during hot and cold weather and questions arose about Iran's ability to meet its supply obligations after a mid-May Israeli missile strike temporarily took offline some production from its giant South Pars gas field.

Iraq relies on Iranian energy imports for roughly one-third of its electricity needs, leaving it vulnerable to supply disruptions that directly affect millions of citizens. Iran is also struggling to meet demand during the summer.