Iran and Iraq have signed an agreement for the construction of a pipeline that will carry natural gas from Iran to feed power plants in the southern Iraqi province of Basra, PressTV reported.
Speaking at a press conference on Tuesday morning, Basra Governor Majeed al-Nasrawi stated that the pipeline project, which is expected to come on-stream by next summer, has been awarded to an Iranian company.
He further noted that the local government in Basra has even sought cooperation from Iranian companies to develop subway network in Basra, and construct railroad connecting Iran and Iraq.
On July 21, Iran signed an agreement with Iraq to deliver natural gas to its western neighbor.
Based on the agreement, 25 million cubic meters (mcm) of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through pipeline.
The 270-kilometer pipeline is estimated to earn Iran USD 3.7 billion a year in revenue.
The pipeline will stretch from Assaluyeh, near the massive offshore South Pars gas field in southern Iran, and will continue into neighboring Iraq to feed Iraqi power plants running on gas.
The South Pars gas field is located in the Persian Gulf on the common border between Iran and Qatar. It is estimated that the field contains 14 trillion cubic meters of gas and 18 billion barrels of condensate. - See more at: http://www.presstv.ir/detail/2013/10/08/328322/iran-iraq-sign-gas-pipeline-agreement/#sthash.9sDw0cPh.dpuf