Iran’s Ilam refinery to supply gas to Iraq: Official

Iranian gas refinery

A senior Iranian energy official says Ilam Gas Refinery in western Iran will be among the suppliers of natural gas to neighboring Iraq, noting that the facility produces two billion cubic meters (bcm) of gas annually.

“In the first phase of Ilam Gas Refinery, gas exports to Iraq would hopefully be supplied from this refinery,” Managing Director of National Iranian Gas Company (NIGC) Hamid Reza Araqi said on Monday, IRNA reported.

He went on to say that the refinery processes seven million cubic meters (mcm) of gas every day.

Iran and Iraq have signed an agreement for the construction of a pipeline that will carry natural gas from Iran to feed power plants in the southern Iraqi province of Basra.

Basra Governor Majeed al-Nasrawi stated on October 8 that the pipeline project, which is expected to come on stream by next summer, has been awarded to an Iranian company.

On July 21, Iran signed an agreement with Iraq to deliver natural gas to its western neighbor.

Based on the agreement, 25 million cubic meters (mcm) of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through pipeline.

The 270-kilometer pipeline is estimated to earn Iran $3.7 billion a year in revenue.

Iran, which sits on the world’s second largest natural gas reserves after Russia, has been trying to enhance its gas production by increasing foreign and domestic investment, especially in its South Pars Gas Field.

The South Pars gas field, divided into 28 phases, is located in the Persian Gulf on the common border between Iran and Qatar. It is estimated that the field contains 14 trillion cubic meters of gas and 18 billion barrels of condensate.

By Press TV

 

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