Gas Export to Iraq in Q2

Gas Export to Iraq in Q2Gas Export to Iraq in Q2

Iran will start supplying gas to the Iraqi capital Baghdad in the second quarter of 2016, a senior official at the National Iranian Gas Company said.

"Currently, Iran is equipped with all necessary infrastructures, including pipelines and a measurement station in Naft Shahr–a town bordering Iraq-for implementing the plan … We are waiting for the Iraqis to get prepared for receiving gas from Iran," Azizollah Ramezani, director of international affairs at NIGC, told Shana.

The two sides signed a draft deal in 2013, estimated to be worth $4 billion to $6 billion.

Iran first announced a delay in gas exports in September 2014, shortly after the self-styled Islamic State militant group seized large swaths of territory in Iraq. In March, Iranian officials said exports could begin within the following two months if security conditions improved. However, officials blamed technical and financial issues for the delay in gas supply to the western neighbor.

Ramezani also speculated that gas supply to Iraq is "unlikely" to go underway any time sooner. Alireza Kameli, managing director of the National Iranian Gas Export Company, had earlier stated that Iran is all set to commence gas export to Iraq, but security issues in the country must be settled first. In mid-November, Tehran and Baghdad finalized a gas export contract, based on which Iran will supply 20-35 million cubic meters of gas per day to three power plants in the southern Iraqi city of Basra near the Iranian border. Gas supply to Basra was speculated to begin in 18 months.

The total volume will reach 45-60 mcm/d, once gas supply to the two Iraqi cities starts.