Iran, Iraq to Sign Second Gas Deal Soon

Iran is shortly expected to sign second gas supply deal with neighbouring Iraq, according to National Iranian Gas Exports Company’s Managing Director Alireza Kameli.

According to an interview given to Shana News on Monday, Kameli said Tehran will sign an agreement to supply gas to Iraqi city of Basra in the next Iranian calendar year which starts on March 21.  

Kameli added that gas supplies would begin one year after signing of the contract.

According to the deal, Iran would pump 5 million cubic meters (mcm) of natural gas per day to the Iraqi city, the official said, adding that the figure is planned to rise to 30 mcm within 6 years.

In a separate report Shana said that Iranian gas supplies to Baghdad is likely to start in May if security conditions in Iraq improve.

Kameli added that National Iranian Gas Company (NIGC) has promised to finish the construction of pipeline for gas exports to Iraq.

In 2013, the two countries signed an agreement under which Iran will start pumping 4 mcm/d of gas to Iraq and with a potential to bring it to 35 mcm/d.

Terrorist attacks by the Islamic State of Iraq and the Levant (ISIL) in Iraq have delayed the gas supply project.

The 270-kilometer pipeline stretches from the village of Charmaleh, located in Iran’s western province of Kermanshah, into the town of Naft Shahr on the border with Iraq.