Bloomberg reports that Iraq has signed an initial agreement to import 25 million cubic meters of natural gas a day from Iran in order to supply its power stations.
The agreement provides for the installation of pipelines within 18 months to transport gas from Iran to the Sadr and al-Quds power stations in Baghdad, Mosaab Serri, a spokesman for the Iraqi Ministry of Electricity, said.
The agreement with Iran, which holds the world’s second- largest gas reserves, requires the approval of the Iraqi Council of Ministers and Parliament.
The pipelines will pass the Mansouriya gas field, which is due to supply gas to the two power plants instead of Iran starting 2016. Kuwait Energy Co., Turkiye Petrolleri AO and Korea's KOGAS, secured rights to develop Mansouriya.
The license, granted last year along with two other natural-gas contracts, has yet to be officially ratified by the Iraqi Council of Ministers.