World Bulletin/News Desk
Following a one-year break due to security issues and a payment row, a Turkish energy company is readying to resume electricity exports to northern Iraq, sources close to the matter said on Monday.
Turkey's Kartet, a subsidiary of Karadeniz Holding, has secured a deal to export electricity to Iraq's Kurdish-led region and has applied for an export license, sources said. The deal arrives amid tensions between Baghdad and Ankara over the latter's growing trade ties with Kurds.
Kartet used to supply electricity to Iraq between 2003 and 2008, but security issues and a payment disagreement reduced sales, eventually bringing them to a complete halt last year. Kartet has applied for an export license with Turkey's energy regulator, the Energy Market Regulatory Agency (EPDK).
Under the deal with the Kurdistan Regional Government (KRG), Kartet will supply 200 megawatts of electricity a year and Turkey's Energy Ministry has given its consent to the deal, the sources said. "We've been in talks about this for a long time. The main target is to sell electricity to Mosul," said Nuray Atacık, head of commercial operations at Karadeniz Holding.
Turkey has increasingly courted Iraq's autonomous Kurdish region to boost energy cooperation with the KRG. A broad energy partnership between the two, ranging from oil exploration to exports, has been in the works since last year.
The Kurds early this year began exporting small volumes of crude oil directly by truck to Turkey. Baghdad says the exports are illegal and has threatened action against the region and against foreign oil companies working there to stop them.
Following Kartet's application, the EPDK also invited all companies that wish to export power to Iraq to bid to obtain an export license, the sources said.
Years of war and underinvestment have left Iraq dependent on diesel imports for its growing electricity needs and Turkey remains a critical supplier to this end.Last Mod: 01 Mayıs 2013, 10:03