Saudi Arabia and Iraq have taken steps to connect the power grids of the two largest oil producers in OPEC, Saudi state news agency SPA reported.
Baghdad currently relies on Iranian imports for energy, and while the US has granted sanctions waivers to Iraq to continue importing fuel from Iran, which is heavily sanctioned by the US, Iraq is looking to reduce its dependence on Iranian gas and electricity.
The Kingdom’s Energy Minister Prince Abdulaziz bin Salman said during a virtual signing ceremony said that Saudi Arabia will aim to “achieve optimal investment” in the electrical connection with Iraq. The memorandum of understanding will frame the joint cooperation of electrical interconnection between the two countries’ networks.
The Saudi energy minister said: “The signing of this MoU comes in implementation of the directives of the leaderships of the two countries, by taking everything that would strengthen the relations and the strategic partnership between the two countries in all fields,” adding that this project comes within the framework of the Kingdom’s Vision 2030 and its executive programs.
Iraqi Electricity Minister Adel Karim said the connection will be completed within two years, but no details have emerged for how much electricity will flow from Saudi Arabia into Iraq.
While Iraq is OPEC’s second-largest producer, years of war destroyed infrastructure that supplies power, and power outages are common in the country.
