Iran to start gas export to Iraq soon

Business Materials 8 May 2017 12:55 (UTC +04:00)

Baku, Azerbaijan, May 8

By Fatih Karimov – Trend:

Iran will start exporting gas to Iraq soon, Hamid Reza Araqi, managing director of National Iranian Gas Company (NIGC), said without unveiling an exact date.

Iran has held talks with Iraqi side to resolve banking problems for opening letter of credit (LC), Araqi said, Mehr news agency reported May 8.

A letter of credit should be opened to ensure the payments of the gas deal, he added.

Iran will export 50 million cubic meters of gas per day to Iraq in the future, the official said.

Under an existing contract, Iran is expected to export 25 million cubic meters (mcm) of gas to Iraq per day.

The two neighboring countries also have agreed on a deal for exporting 25 mcm of gas to Iraq’s Basra. However, no pipelines have been laid so far for exporting gas to Basra City.

Araqi also said that Iran is in talks with Oman and Afghanistan for gas export as well.

Iranian officials have earlier announced readiness to export natural gas to Herat through laying a pipeline under an agreement between the two countries.