(Contractor name added in sixth paragraph) 

Iraq has awarded a contract to a Chinese company to expand the output of its power plant in the Northeastern Diyala Governorate, an official was quoted on Wednesday as saying. 

The contract for boosting the capacity of the 640 megawatt (MW) Mansuriya gas power plant is part of an oil-for-project agreement signed between the OPEC oil producer and China three years ago. 

The contract involves installation of two new generation units with a combined output of around 362 MW, said Ahmed Mousa, a spokesman at the Electricity Ministry. 

Mousa told the Iraqi Aliqtisad News network that the project is in line with Ministry plans to “maximise production at power stations” in Iraq to face growing domestic demand. 

He noted that the plan runs in parallel with a strategy by the Ministry to award contracts to foreign companies to build solar power plants to achieve electricity self-sufficiency and reduce reliance on imported energy. 

Local media reports indicate that the contract was awarded to Shanghai Electric.

Read more: Iraq unveils plan for 4,000 MW combined cycle power plants

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)