By Simon Kent.
Iran is to start exporting gas to Iraq from the South Pars field after a year long delay, Bloomberg reports.
The shipments will begin at 7 million cubic meters a day for power generation in Baghdad. Another export route is planned for 2017, which will serve Basra, totaling 70 million cubic meters a day in exports.
While Iraq is suffering a shortage of natural gas due to its own delay in implementing a 2005 "Gas Master Plan," to capture associated gas, a major question will be how much the imports will cost Iraq, which has the capacity to become a major exporter.
Iraq's gas plan aims to eliminate flaring by 2022, which would in theory power several million homes and help linked industries in southern Iraq, but progress connecting fields to treatment facilities and power plants has been slow.