Iran and Iraq finalise gas pipeline deal

Posted on 22nd September 2015

Iran and Iraq have finalised a plan for developing a pipeline to carry 35 million cu m (mcm) of gas to Iraq, a report said.

"The Iraqi side has also begun initial executive work," Azizollah Ramezani, international relations director at the National Iranian Gas Company (NIGC), was quoted as saying in the Iran Daily report, which cited Shana.

The project is still on the agenda despite delays in decision making, he added.

"The executive phase of the contract to export 25 mcm of gas to Iraq will begin once the document is signed," he said.

The amount will be delivered to Basra mainly for generating electricity during the five hot months of the year, according to tradearabia news report.

Gas transfer to Iraq will begin with 5 mcm per day and this figure will reach 35 mcm per day with the completion of a gas pipeline project from Iran, Ramezani said.

The pipeline, which is estimated to earn Iran an annual $3.7 billion in revenues, will be fed by the offshore South Pars Gas Field in southern Iran, the report said.

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