[Premium] Iran Readies Second Line to Iraq

Four months after starting gas export to Iraq’s capital Baghdad, Iran says the equipment, pipeline and terminals are ready for starting gas flow to Iraq’s Basra district as well.

After a one-year delay Iran finally started 7mn m³/d gas exports to Baghdad June 22. The delay was caused by Iraq’s outstanding debt to Iran for building the Naftshahr-Baghdad gas pipeline as well as the dispute over the price of the gas, the payment method and other matters, including the need to open a letter of credit (LC) with an Iraqi bank to ensure payments on time.

Both contracts are for 50mn m³/day; the Baghdad contract was signed in 2013 and the Basra contract two years later.

Gas deliveries to Bagdad started after the deputy oil minister Hossein Zamaninia said that the Trade Bank of Iraq had agreed to issue a LC for gas purchases.

In order to implement the supply contracts, Iran is to complete Iran Gas Trunkline 6 (Igat 6) with 110mn m³/d transit capacity to deliver South Pars gas to western regions and Iraq.

National Iranian Gas Company (NIGC) CEO Hamid Reza Araghi told local Fars agency October 24 that about 10mn m³/d of gas are supplied to Bagdad from Naftshahr border (the source of gas is Ilahm provice’s fields) and this will rise when Igat 6 become operational to transit South Pars gas. Iran announced late September that the 1,200-km pipeline would be complete in two months.

However, Basra is very close to South Pars and a 141-km, 48 in branch connecting Igat 6 to Basra, crossing the border at Shalamcheh, has almost completed. Araghi said that the gas deliveries would start soon.

Iran announced earlier that gas exports during five months of current fiscal year (March 21-August 22) increased by 64% to 5bn m³/yr year-on-year.

National Iranian Gas Transmission Company (NIGTC) CEO Saeid Tavakoli announced October 23 that some 101.7bn m³ of sweet gas (refined gas) was injected into the grid between March 22 and September 22. He didn’t mention the growth rate, but according to an official document, prepared by NIGC and seen by NGW, the volume indicates 4.7% growth year-on-year.

Total gross gas production reached 285bn m³/yr last fiscal year, of which the sales gas amount stood at 204.77bn m³, according the document. BP’s annual statistical review put the calendar 2016 sale gas volume at 202.4bn m³/yr.

Dalga Khatinoglu