Iraq is considering building a natural gas pipeline to Kuwait and an associated petrochemical plant, Reuters reports.

The Iraqi government has hired Toyo Engineering, a Japanese firm, for the project, the news agency reports.

While Toyo has been retained to build the pipeline, a final determination on the project has not been made.

The company is currently in talks with the Iraqi government about the project, the Chief Financial Officer, Kensuke Waki, told Reuters.

If the project moves forward, Toyo does not anticipate any gas deliveries through the pipeline until at least 2020, according to Reuters.

Kuwait has offered to guarantee 80% of the project’s costs, sources told Reuters. Natural gas deliveries could be used to pay off Iraq’s reparation payments to Kuwait.

Despite mutual interest in the project, differences have emerged between Iraq and Kuwait over the pricing of the natural gas and the location of the petrochemicals plant, according to the news agency.

The natural gas could come from either West Qurna 2 or Rumaila.