July 11 (Reuters) - Iraq will begin trading crude oil for Iranian gas to end the recurring issue of payment delays to Tehran due to the need for U.S. approval, Iraqi Prime Minister Mohammed Shia Sudani said on Tuesday.
By trading Iraqi crude for Iranian gas, Sudani said, Iraq would avoid rolling power cuts every summer while working to complete gas capture and extraction projects that would help make the country self-sufficient.
The United States has pushed Iraq, OPEC second-largest producer, to cut its reliance on Iranian gas.
Iraq spends roughly $4 billion per year on imports of Iranian gas and power while burning massive quantities of natural gas as a byproduct of its hydrocarbons sector.
On Monday Iraq signed a massive deal with French oil major TotalEnergies that includes plans to capture gas from oilfields in the southern Basra region.
Persons:
Mohammed Shia Sudani, Sudani, Farhad Alaaldin, Henry Rome, Timour Azhari, Arshad Mohammed, David Gregorio, Stephen Coates
Organizations:
Iraqi, Reuters, State Department, Biden, Washington Institute for Near, Policy, Monday Iraq, Thomson
Locations:
Iraq, Tehran, Iran, Baghdad, Washington, United States, OPEC, Basra, Erbil