Total of 14 Consortia Interested in Second Iran-Iraq Gas Pipeline

A total of 14 Iranian consortia have shown interest in financing the second Iran-Iraq gas pipeline, Fars News Agency reported on Friday.

Earlier this month, Iran offered a $1.5 billion tender for the construction of a second pipeline to carry natural gas to neighbouring Iraq. The project involves laying out pipeline from the Iranian city of Dezful to the border city of Shalamcheh and is estimated to take three years – one year for the pipeline and two years for pressure booster stations.

The groups of companies have already received the necessary documents related to investment in the project, and should offer their qualifications by the set deadline, Fars News quoted Hamid Reza Araqi, an Iranian deputy oil minister and managing director of the National Iranian Gas Company (NIGC), as saying.  He noted that Iran-Iraq gas pipeline needs a primary investment of $500 million. 

Iranian gas exports to Iraq will increase in the next two years after Iran starts transferring supplies via the two pipelines of Baghdad and Basra.

The second pipeline which passes through Shalamche-Basra route has a final capacity of 35 million cubic meters per day.

Iran's total gas exports to Iraq through the two Baghdad and Basra routes could be increased to 70 mcm/d, according to the officials of the National Iranian Gas Company.

The first gas pipeline between Iran and Iraq has been already been completed.

Last year, Iran commenced pre-start up tests on the pipeline. After the end of cleaning and calibration pigging, 97 kilometers (Iran’s section) of the pipeline will become operational. The 97-kilometer pipeline, 48 inches in diameter, would be linked to Iran’s gas trunklines (IGATs) to deliver natural gas from Iran to Iraq.