Iran, Iraq Sign Six Year Gas Deal

Iran has signed a six year deal to supply gas to Iraqi city of Basra, second such deal between the two countries.

As per the deal signed by National Iranian Gas Company (NIGC) head Reza Araqi and Iraqi Deputy Minister of Electricity Khalid Hassan Saleh, Tehran will supply 20 mcm/d of natural gas to Basra in winters and 35 mcm/d summers, state owned Shana reported Wednesday.

Gas exports to Basra will start with a daily volume of 7 mcm/d which would increase to 20 mcm/d in three phases.

Iran will start constructing the required pipelines and pressure boosting facilities within the next one and a half years, Araqi told Shana, adding that the gas will be fed to Iraq's gas network via 6th gas trunkline (IGAT 6).

An offshoot of IGAT will cross Iranian city of Khorramshahr to reach Basra. IGAT 6 transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.

Information about the price has been kept confidential.

In 2013, the two countries signed a deal where Tehran would export natural gas from South Pars to Baghdad. As per the agreement, 25 mcm/d of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.