Iran: Gas Exports to Iraq by May, to Expand by Next Year

Iran: Gas Exports to Iraq by May, to Expand by Next Year

An Iranian official has announced the country’s plan to export natural gas to Iraq within months.

The head of the National Iranian Gas Export Company (NIGEC) Alireza Kameli told IRNA on Monday that Iran’s gas flow to the Iraqi capital Baghdad could begin as early as May 2015, if the country’s security situation improves.

He said Iran will start with a daily supply of 4 mcm of gas to Baghdad, which could later rise to 35 million.

Kameli added that the National Iranian Gas Company (NIGC) has pledged to finalize the pipeline project for the export of gas to Iraq soon.

The director of NIGEC also spoke of another plan for the export of natural gas to Iraq’s southern city of Basra in 2016. He said Tehran seeks to supply Iraq with a combined volume of 70 mcm of gas from the two pipelines in the future.

Last month, Hamid Reza Araqi, the managing director of the National Iranian Gas Company said a total of 14 domestic consortia had voiced readiness to finance the construction of a pipeline that will transport natural gas from Iran to its western neighbor.

The groups of companies have already received the necessary documents related to investment in the project, and should offer their qualifications by the set deadline.

He added that the company qualifications will be later reviewed by NIGC, and companies capable of financing up to $1.5 billion will be declared eligible.

Araqi further noted that a total of $500 million is needed in order to start the project, adding that any interested party holding such capital will be able to initiate the work and fulfill their obligations within the next two years.

Source: Press TV

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