Iran, Iraq to sign gas deal tomorrow

TEHRAN Nov. 10 (Shana) – Tehran and Baghdad are scheduled to sign a deal on Wednesday to export Iranian natural gas to Iraq’s Basra and boost gas exports to the country.

Based on the deal, Iran will export 25 mcm of natural gas on a daily basis.

Tehran and Baghdad has a gas deal based on which the former must supply 25 mcm of gas per day to Baghdad which will be extended to 35 mcm/d by signing the deal on Wednesday.

Iran would start pumping natural gas to Iraq provided that the latter ensures security of its soil, said a senior Iranian gas official in June.
“Iran is prepared to export gas to Iraq but insecurity in Iraq and the presence of ISIL have delayed the exports,” Ali-Reza Kameli, managing-director of National Iranian Gas Exports Company, said.

He said when Iran will start pumping gas to Iraq depends on the security situation of Iraq.

“If Iraq manages to cleanse the regions where Iran’s gas is to be delivered, then Iran will start pumping gas to Iraq,” added Kameli.

The official had recently said that Iran’s gas will flow into Iraq before the end of Ordibehesht, the second Iranian month.

Iran’s gas will go to the Iraqi cities of Baghdad and Basra.

Gas exports to Baghdad will start with a daily volume of 4 mcm which could increase to 35 mcm/d.

Iran will also start supplying 5mcm/d of gas to Basra after a six-year deal is signed. The deal, which is to be signed next year, would require Iran to raise gas exports to Basra to 30 mcm/d.

Gas delivery to Basra would come from Iran Gas Trunkline VI (IGAT 6) which transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.

Part of the gas to Iraq will be used for generation of gas to address some of the country’s electricity troubles.
Iraq is facing serious load-shedding and Iranian companies are operating 33 megaprojects, worth $1.5 billion, in Iraq for the time being.