Dec 31 2012

Iraq wants Iran to expedite construction of gas pipeline

By Shaymaa Adel

Azzaman, December 31, 2012

Iraq’s consumption of gas is surging with demand surpassing supply, according to the country’s parliamentary commission on energy.

The commission has prepared a report on Iraq gas consumption and says without imports there will not enough energy to drive power plants and other gas-driven installations in the country.

Iran, with its massive gas reserves, has emerged as the candid to meet Iraq’s increasing gas consumption, said Awad al-Awadi from the commission.

Awadi said currently Iraq imports gas via tankers but sea shipments were more expensive and less reliable than the construction of a gas pipeline linking the countries.

Iran has already extended a gas pipeline to Iraqi borders and, according to Awadi, construction is underway to extend to Baghdad.

Awadi said work on the Iraqi side of the pipeline was proceeding and expected Iranian natural gas supplies to flow sometime in 2013.

Not only many of Iraq’s major power plants are run by gas. A sizeable portion of its oil industry needs gas to function.

Iraq has huge natural gas reserves and at present it flares large amounts of its associated gas because  it lacks the technology to turn into fuel. Its natural gas fields remain undeveloped.

Awadi said Iran was highly advanced in natural gas industries with a capacity to export to neighboring states.

Initially, Iran will ship to Iraq 25 million cubic meters of gas per day. Awadi said Iraq would rely on Iran for gas supplies until it develops its own natural gas fields and builds the industry that treats its associated gas.

The pipeline is part of a gigantic gas export project by Iran that will extend to Syria, Lebanon and terminals on the Mediterranean.

It already has a pipeline that ships to Turkey more than 30 per cent of its fuel needs.

Iran is building pipelines to link its gas industry with other neighboring states like Pakistan.

However, sanctions on Iran are making it difficult for the country to export freely to international markets.

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