The European Union and Iraq on 18 January signed a Memorandum of Understanding to strengthen their strategic energy cooperation in areas such as natural gas, energy security and renewables, also hoping that gas resources in Northern Iraq would be used to kick start the flow of energy via the EU-backed Nabucco pipeline.

“It’s an important landmark,” Ferran Tarradellas Espuny, spokesman for EU Energy Commissioner Andris Piebalgs, told New Europe telephonically from Bagdad on 18 January. He said that the primary source for Nabucco is Azerbaijan, but Iraqi gas supplies would be a welcome boost to the project. “The primary source will be Azerbaijan – Shah Deniz II - and Iraq will be important secondary source. It is not that without Iraq we cannot do Nabucco. We can do Nabucco also without Iraq,” he said.

The memorandum, however, is good news from Iraq, which is another possible source of gas for Nabucco. Tarradellas Espuny said that the European Commission is optimistic they will be able to get enough gas – 10-12 billion cubic meters – for the first stage from Azerbaijan and 5-10 billion cubic meters from northern Iraqi gas fields. “We can start with Iraq’s Akkas gas field, which is near the Syrian border, but then there is a lot of associated gas from different oil fields,” he said. Gas could feed into Nabucco from three entry points, he said.

The European Commission energy spokesman said that European and Iraqi officials discussed issues concerning the Southern Corridor, including the Trans-Arab gas pipeline that can feed into the Nabucco pipeline.

However, he explained that the memorandum between the EU and Iraq was a general document similar to the one signed with Turkmenistan and other countries, pertaining to “issues related to energy, energy efficiency, the development of infrastructure, establishment of markets and renewables.” The document does not mention Nabucco.

The memorandum was signed by Piebalgs and by the Iraqi Minister for Oil Hussain Al-Shahristani. Baroness Ashton, The EU High Representative for Foreign Affairs and Security Policy and Vice President of the Commission, will subsequently co-sign the memorandum together with the Council Presidency, an EU press release read.

"Iraq represents a vital link for EU's security of supply. It is already an important supplier of oil and can become a key gas supplier for the Southern corridor; the EU can help Iraq to develop electricity system and tap its vast renewable resources. The memorandum lays the foundation of a strengthened EU-Iraq bilateral relation," Piebalgs was quoted as saying in the press release.

In recent years the EU has significantly strengthened its relations with partners in the Middle East and North Africa and this policy is one element in diversifying EU energy imports, the press release said. Piebalgs also mentioned that last year in Prague, Iraqi President Jalal Talabani was already supporting the Southern Corridor gas pipelines. After signing the Memorandum, the Commissioner met with Prime Minister Nouri Al-Maliki for a discussion on bilateral relations.