Tehran and Baghdad have agreed to extend the contract on Iran’s gas exports to Iraq for another five years.

Iran Press/ West Asia: The new agreement between Iran and Iraq enables the two countries to extend the gas export deal for five years.

The deal was signed between Majid Chegeni, who serves as the CEO of the National Iranian Gas Company (NIGC) and Iraq’s Minister of Electricity Ziyad Ali Fadel, in Baghdad.

Iran has been supplying natural gas to Iraq for the past 10 years under an agreement signed in July 2013.

The supply increased to nearly 50 million cubic meters (mcm) per day in recent months after Iraq settled part of the debts it owed to the NIGC.

Iraq relies on the supply of gas and electricity from Iran for nearly a quarter of its power generation. The country has secured rounds of waivers from US sanctions on Iran to be able to import gas from its eastern neighbor. 219