Iran, Iraq Ink Gas Deal
TEHRAN (Tasnim) – Iranian and Iraqi oil ministers signed a deal to transfer Iran's natural gas to two Iraqi power plants.
The agreement was signed by Iranian Oil Minister Rostam Qassemi in a special ceremony held in the Iraqi capital city of Baghdad on Sunday evening.
The ceremony was also attended by Managing-Director of National Iranian Gas Company (NIGC) Javad Owji.
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.
As regards the gas deal, Owji noted that Iran has already completed the construction of its 227-kilometer section of the pipeline to carry natural gas to Iraq.
He also stated that the pipeline stretches 270 kilometers on the Iraqi soil.
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 pipeline. The project, dubbed friendship pipeline, will transfer natural gas to Lebanon and Jordan.
Iran, which holds the second largest gas reserves in the world, seeks to enhance gas production by increasing foreign and domestic investments.