Iran, Iraq Discuss Energy Cooperation

09 June 2012 | 17:58 Code : 1902512 Latest Headlines

(FNA)- A top Iranian gas official announced that the country would start supplying gas to neighboring Iraq in the next 18 months.


Head of the National Iranian Gas Company (NIGC) Javad Oji told the oil ministry's website, Shana, that based on an initial agreement with Iraq's electricity ministry Iran will deliver 25 million cubic meters of gas per day to Iraq via the borders of the Western Ilam province to meet the gas needs of the Baghdad and Al-Mansoura power plants.

Oji, who accompanied Iranian Oil Minister Rostam Qassemi in a last week visit to Iraq, said the two sides also discussed construction of Iran-Iraq Gas Pipeline to clarify the details of its implementation.

He added that based on a bilateral agreement, Iranian contractors will be responsible for constructing the 270-kilometers gas pipeline.

"The project of gas transit to Europe through Iraq, Syria, Lebanon and the Mediterranean region was another topic on the agenda," Oji said, adding during the visit, a report by the international consultant of the project was reviewed which included issues such as route, funding and procurement.

The cost of the 5800-kilometer-long pipeline is estimated at 15 billion dollars.

Rising LPG exports to Iraq was also discussed during the visit, according to the NIGC top executive.

He said Iran's Gas Trade Company had already signed two LPG export contracts with the neighboring country, while studies are underway about a raise in the volume of exports.