Kuwait and Iraq agreed on an export price for Iraq’s natural gas, the Kuwaiti Oil Minister, Issam El Marzouq, said, Reuters reports.
The Iraqi government still must approve of the prices.
Negotiations over the prices are part of larger negotiations over Iraq’s final reparation payment to Kuwait and a plan to build a natural gas pipeline between Kuwait and Iraq, Reuters reports. The deal being negotiated also includes the construction of a petrochemical plant.
If an agreement is concluded between the two countries, Iraq will export natural gas to Kuwait for ten years. Exports would begin at 50 million cubic feet per day (mcf/d) and rise to 200 mcf/d by the end of the period, according to Reuters
The gas will come from the Rumaila oilfield, the news agency reports.
Kuwait has offered to guarantee loans for up to 80% of the project, Reuters previously reported.