28 December 2020 - 15:54
  • News Code: 311346
Iraq Owing Iran $6b in Unpaid Gas Bills: NIGC 

TEHRAN (Shana) – The National Iranian Gas Company (NIGC) said the recent reduction in gas flows to Iraq came after repeated warnings to Baghdad to settle its outstanding gas dues. 

NIGC said Iraq owed more than $6 billion to Iran for importing gas. Iraq has been receiving 5 million cubic meters a day since Iran cut its daily exports from 50 million cubic meters two weeks ago, Ahmed Moussa, a spokesman for Iraq’s electricity ministry, said in an interview with the Bloomberg.

Following the publication of an interview by Mr. Moussa, who is a spokesman for the Iraqi Ministry of Electricity about the reduction of Iranian gas exports to Iraq, the National Iranian Gas Company emphasized: “The gas exports cuts to Iraq took place after repeated warnings based on the gas export contract between the two countries.”

NIGC released a statement about the issue, saying: "The Iraqi Ministry of Electricity owes more than $5 billion in gas bills to the National Iranian Gas Company, of which $3 billion remains blocked and inaccessible in the Iraqi TBI Bank, and more than $2 billion is overdue debt and remains unpaid by the Iraqi Ministry of Electricity. In addition, the Iraqi side owes more than $1 billion to the National Iranian Gas Company for contractual offenses under the agreement.

“The export of gas by the National Iranian Gas Company to Iraq is an economic and commercial matter, while the Iranian side has not benefited from the contract given that the Iraqi side had more than $6 billion of gas bill arrears.

"The purpose of the export is generation of revenue, and this money is used for purchasing food and medicine, therefore, the company [NIGC] has slashed the amount of gas flows to Iraq according to the terms of the contract, after repeated warnings, which unfortunately were ignored by the Iraqi side. In any case, the National Iranian Gas Company remains strictly committed to implementing the signed contract."

News Code 311346

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