Oct 2 2012

Iranian contractors building $450 million gas pipeline to Iraq

Azzaman, October 2, 2012

Iranian local contractors are constructing a pipeline that will ship 25 million cubic meters per day of Iran’s natural gas to Iraq.

It is one of the biggest gas pipeline projects the Iranians are carrying out on their own despite crippling trade sanctions, particular on the oil sector, imposed by U.S. and Western European governments.

Iraq needs Iranian gas to power some of its electricity plants.

Iranian natural gas will start flowing in the summer of 2013, according to the Oil and Energy Commission at Iraq’s parliament.

Ali al-Dhari, a commission’s member, said the pipeline construction was part of a deal between the countries.

“The Oil Ministry has struck a contract with Iran for the import of natural gas via this pipeline,” he said

The Iranian contractors will first link two major power stations in Baghdad to their gas pipeline network.

The pipeline will extend from Iranian natural gas fields and pass through the Province of Diyala and down to Baghdad.

Dhari said the Iranians were working round the clock to complete the contract on schedule and that 25% of the pipeline were already ready.

Dhari declined to reveal the terms under which Iran had agreed to supply Iraq with natural gas.

The pipeline, Iran hopes, will eventually extend to Syria and terminate at terminals on the Mediterranean for exports to European countries.

Iran has the world’s second largest natural gas reserves after Russia but sanctions have hindered their development.

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