25 July 2016 - 16:23
  • News Code: 265696
Iraq to Send Delegation to Finalize Gas Price with Iran

TEHRAN, July 25 (Shana) -- A delegation of Iraqi power officials are scheduled to visit Tehran next week to discuss gas price with neighboring Iran.

Director of International Affairs of National Iranian Gas Company (NIGC) Azizollah Ramezani said a number of Iraqi power staff are in Iran to receive technical and financial training and representatives of the Iraqi power ministry will head to Iran to discuss finalization of Iran's gas price. 

Addressing a training course on petroleum industry at the Iranian Ministry of Petroleum in Tehran on Monday, Ramezani said Iran has prepared the required infrastructure for exporting its gas to Iraq. 

Iraqi has voiced readiness to prepare its side of the projects to received Iranian gas by late August, he added. 

He said under the 6th five-year development plan (2016-2021), the country eye an export of up to 80 bcm of natural gas of which up to 60 bcm will be sent to neighbor countries. 

He said 10 of the 15 countries that surround Iran receive Iranian gas and export of gas to India and China are under study as well. 

Furthermore, export of liquefied natural gas (LNG) to other markets in Japan and South Korea are also being considered by NIGC, Ramezani added.

Iran’s gas will go to the Iraqi cities of Baghdad and Basra. 

Gas exports to Baghdad will start with a daily volume of 4 mcm which could increase to 35 mcm/d, he said.

Iran will also start supplying 5mcm/d of gas to Basra after a six-year deal is signed. The deal, which is to be signed next year, would require Iran to raise gas exports to Basra to 30 mcm/d.

Gas delivery to Basra would come from Iran Gas Trunkline VI (IGAT 6) which transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.        

Part of the gas to Iraq will be used for generation of gas to address some of the country's electricity troubles. 

Iraq is facing serious load-shedding and Iranian companies are operating 33 megaprojects, worth $1.5 billion, in Iraq for the time being.  

News Code 265696

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