Iraq Signs Gas Import Deal with Iran

Iraq’s electricity ministry said it has signed an initial agreement with Iran to import natural gas for power generation.

Under the memorandum of understanding between the two neighbors, Iran will install a pipeline through Iraq and supply it with gas that would be used to feed two power plants in Baghdad.

Iraq will buy 25 million cubic meters of gas each day from Iran according to international prices, which would generate 2,500 megawatts, Iran’s SHANA news agency reported.

The gas pipeline will pass through Iraq’s Mansuriyah gas field near the Iranian border in Diyala province. The gas would supply a power plant in Sadr City in northern Baghdad, and another plant in the northern outskirts of Baghdad. The pipeline will be completed in 18 months.

Managing director of the National Iranian Gas Company (NIGC), Javad Owji earlier said, Iran would start exporting 25 million cubic meters of natural gas to Iraq per day by the summer of 2013.

Iran’s natural gas will be delivered to the neighboring Iraq via two separate routes.

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LNG World News Staff, June 03, 2013