Gas Export Price to Iraq Confidential

Gas Export Price to Iraq ConfidentialGas Export Price to Iraq Confidential

Iranian and Iraqi high-ranking officials approved the final draft of gas export to Iraq after four days of negotiations, Azizolah Ramezani, National Iranian Gas Company's director for international affairs, said on Sunday.

On the critical issue of price, Ramezani said, "Based on the agreement's conditions, price is a confidential issue. Nevertheless, it will be competitive and serve both sides' national interests," IRNA reported.

The official said gas will be delivered to Iraq within two weeks of signing the agreement by the two states. Based on the contract, gas export will start at 4 million cubic meters per day and will gradually reach 25 million cubic meters.

According to Ramezani, the Iraqi delegation, comprised of energy ministry officials, held technical sessions with Iranian gas experts to discuss operational issues, including the method of delivery and qualitative and quantitative measurements.

Based on an addendum, Iran is bound to increase its export up to 35 million cubic meters per day during the hot summer months. Underscoring Iran's capability in transferring expertise in gas sector, the official noted that Iraqi gas personnel will be trained by NIGC's specialists.

Asked about the exact time of delivery, he said, "Iraq gas infrastructure is not ready yet. However, it is estimated that gas delivery will commence in less than a month."

Tehran and Baghdad signed a draft deal in 2013 to transfer Iran’s gas to two Iraqi power plants. There are plans to export 30-50 million cubic meters of gas per day to Iraq, the revenues from which are estimated at $4-6 billion.

Gas will be exported from Naftshahr region in Kermanshah Province in the first phase, by diverging branches of the Sixth Iranian Gas Trunkline.

In March, Kameli, managing director of National Iranian Gas Export Company, said exports to Iraq could begin in May if security conditions improved.

Iran first announced a delay in September last year, shortly after Islamic State militants took control of large swathes of Iraqi territory. Although exports were expected to commence by the end of May, Hamdireza Araqi, managing director of National Iranian Gas Company, blamed technical and financial issues that seem to have been settled.