The managing director of the National Iranian Gas Company (NIGC) said the Islamic Republic is fully ready to start exporting gas to neighbouring Iraq as soon as the Arab country opens a line of credit (LC) for the project.
“Iraqis are now negotiating with international banks so they can open an LC,” Hamid Reza Araqi said in a press conference in Tehran on Wednesday.
Iran has laid 100 kilometers of pipelines for the project through which 5 million cubic meters (mcm) of natural gas will be exported to Iraq daily in the first stage.
The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.
Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.
The project is estimated to earn Iran $3.7 billion a year in revenues.
(Source: Tasnim, under Creative Commons licence)