Iran to Supply Natural Gas to Iraq
- July, 21, 2013 - 15:53
- Economy news
TEHRAN (Tasnim) - Oil ministers of Iran and Iraq plan to sign an official agreement to supply Iran’s natural gas to two Iraqi power plants.
Iranian Oil Minister Rostam Qassemi and his Iraqi counterpart Abdul Kareem Luaibi are expected to sign the agreement in Iraq’s capital Baghdad on Sunday.
The project is aimed at supplying Al-Baghdad and Al-Mansouriyah power plants in Iraq with 25 million cubic meters (mcm) per day of natural gas.
Iran says the new exports will earn the country nearly $3.7bln a year.
Despite being one of the largest exporters of oil, Iraq needs Iran to fill the shortage of natural gas.
Meanwhile, Iran and two regional countries, namely Syria and Iraq, have launched talks since last year to construct a new gas pipeline.
Iran, which holds the second largest gas reserves in the world, seeks to enhance gas production by increasing foreign and domestic investments.