National Gas Company Denies 'Suspension of Gas Exports' to Iraq; One of Two 'Transfer Points' Has Been Disconnected

An official from the National Iranian Gas Company denied the suspension of gas exports to Iraq. Saeed Aghli, the dispatch manager of the National Iranian Gas Company, announced that Iran's gas export commitments to Iraq are being executed 'according to plan.' The Iraqi Ministry of Electricity had reported on Friday that electricity production had decreased due to a 'shortage' in gas imported from Iran. In a statement released by the Iraqi Ministry of Electricity, it was noted that 'the shortage of imported gas has impacted power plants, causing a deficit of over 4,000 megawatts in the electricity supply network in Baghdad and central regions and reducing electricity delivery to southern areas.' However, today, Aghli denied the 'suspension of exports' but explained that one of the two 'transfer points' for gas to Iraq has been blocked. This Iranian official attributed the issue to 'the execution of periodic measurement processes' at this point and stated that 'the agreed commitments are being fulfilled through the second point.' Aghli mentioned that Iran's gas exports to Iraq are conducted from two transfer points and claimed that 'according to the agreement made two months ago with the Iraqi side,' one of the transfer points was taken out of operation at the beginning of this year for the purpose of executing periodic measurement processes. This senior manager of the National Iranian Gas Company considered the 'execution of calibration in the process of fulfilling export commitments' as 'a common practice' that has been done before and 'is not limited to the gas export contract to Iraq.' As of the time of this report, no comments regarding this 'agreement' have been published by the Iraqi side. On Friday, the Iraqi Ministry of Electricity reported a decrease in electricity production due to the 'shortage' of gas imported from Iran and announced that it is seeking to 'reduce reliance on imported gas.' Reports of disruptions or suspensions in gas exports to Iraq have resurfaced recently, coinciding with an increase in gas consumption in Iran, where the dispatch manager of the National Iranian Gas Company announced an average gas consumption of 570 million cubic meters for Monday, January 8, equivalent to 70% of the total gas produced in the country. Earlier, on January 1, the head of the Gas Control Center in Iran urged people to wear warm clothing at home to conserve gas. The government has taken measures to cut gas supplies to some industries since December to prevent premature gas cuts. The website 'Eco Iran' reported on December 21 that discussions about cutting gas supplies to industries and gas consumption restrictions for publicly traded companies have begun in the Codal system. The Iranian gas industry suffers from a lack of investment, with the required investment estimated at over $80 billion. Due to international sanctions, the Islamic Republic is unable to attract foreign investment, and domestically, due to reduced foreign exchange revenues, investment has become practically impossible. The weather has turned cold in Iran; gas exports to Iraq have been suspended. Ongoing labor issues for Pars Jonoobi workers; the government has threatened protesters. With increased gas consumption in the residential sector; gas cuts are looming. Gas cuts threaten petrochemicals; petrochemicals require 83 million cubic meters daily. A harsh winter has paralyzed the stock market. The head of the Iranian Scientific Energy Associations Union warned that soon we will lose one phase of Pars Jonoobi annually. The gas company advises people: wear warm clothing at home.