Iraq has signed a tentative deal with Iran to import natural gas to ease its electricity woes, an official said Monday, in a step that deepens economic ties with Tehran as US troops prepare to leave at the end of the year. Iraq's government has been struggling to rebuild its war-damaged electricity grid after power shortages last summer spurred demonstrations that turned deadly when security forces fired into crowds.
But blackouts are still common despite billions spent on improving power stations and lines. Iraq's Electricity Ministry spokesman, Mussab al-Mudaris, said the five-year plan with Iran will let Iraq buy 25 million cubic meters of natural gas each day to feed two power plants in north-eastern suburbs of Baghdad one built by Iran and the other by South Korea's Hyundai conglomerate. Al-Mudaris said the gas will be fed through a pipeline expected to completed by the end of 2012. The deal still needs the backing of Iraq's Cabinet and parliament, but al-Mudaris expected approval within a month.