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.