Iran to Supply Iraq with Gasoil for Power Generation

Bloomberg reports that Iran has agreed to supply 1.5 million liters a day (9,400 barrels), of gasoil to Iraq over the next 12 months for power generation.

Masaab Serri, spokesman for the Iraqi Electricity Ministry, said in an interview that the fuel will enable power plants to generate 250 megawatts, according to the agreement signed by officials from the neighboring countries in Baghdad. The gasoil will be transported by truck and sold at international prices, he said.

Iraq, holder of the world’s fifth-largest crude reserves, is seeking fuel to meet domestic demand. The nation’s refineries at Doura [Dora, Daura] in Baghdad, in the northern city of Baiji [Bayji], and in the southern region of Basra, have a combined capacity of about 700,000 barrels a day.

In practice, they process less crude than that because of wartime damage and are unable to meet the domestic demand of about 600,000 barrels a day, according to a U.S. Energy Department report.

(Source: Bloomberg)

One Response to Iran to Supply Iraq with Gasoil for Power Generation

  1. […] soon in order to reduce this phenomenon and also punish those involved.”Iraq recently had to make an emergency agreement for Iran to ship an extra 1.5 million liters of fuel to keep its power stations running.(Source: […]

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  1. Ministry of Electricity Officials ‘Stealing Millions in Fuel’ | Iraq Business News - July 10, 2011

    […] soon in order to reduce this phenomenon and also punish those involved.”Iraq recently had to make an emergency agreement for Iran to ship an extra 1.5 million liters of fuel to keep its power stations running.(Source: […]