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Iraq increases reliance on Iranian energy

Cabinet approves $365 million deal to build natural gas pipelines feeding Iranian gas into Iraq's power plants.
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Raad Shalal al-Ani (center right) stands beside Iranian Ambassador Hassan Danaie-Far (center left) at the signing of a $365 million pipeline contract at the Electricity Ministry in Baghdad on June 30, 2011. (Photo courtesy of the Electricity Ministry)

BAGHDAD - Another power-starved summer has begun and the Electricity Ministry, unable to rely on the Oil Ministry to deliver natural gas, has signed a deal with the Iranian government to build a pipeline and import natural gas for Iraq's power stations.

Electricity Minister Raad Shalal al-Ani and the Iranian Ambassador to Iraq, Hassan Danaie-Far, signed a $365 million pipeline contract Thursday in Baghdad.

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