Iraq Signs $365m Iranian Gas Pipeline Agreement

Iraq signed a $365 million agreement to install a pipeline network to import natural gas from Iran for power stations in the country, according to reports from Bloomberg and Iran Independent News Service.

The pipelines will eventually supply 25 million cubic meters of Iranian natural gas a day to the Sadr, al-Quds and South Baghdad power stations in the Iraqi capital, Mosaab Serri, a spokesman for the Iraqi Ministry of Electricity, told Bloomberg by telephone. 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 network of 48-inch pipelines will run for 130 km, and will pass the Mansouriya gas field, which is due to supply gas to the two power plants instead of Iran starting 2016, Serri said in a statement on May 22. Kuwait Energy Co., Turkiye Petrolleri AO (TPAO) and Korea Gas (Kogas) secured rights to develop Mansouriya.

Iraq and Iran have also reached an initial agreement to install another pipeline network from the Iranian region of Abadan to Basra in southern Iraq where it will feed a planned 1,250-megawatt power station, Serri said.

(Sources: Bloomberg, Iran Independent News Service)

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