A top Iranian energy official unveiled plans for a rise in natural gas exports to neighboring Iraq next year.

In an interview with Tasnim on Saturday, Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi said the country’s exports of natural gas to Iraq will increase during the spring and summer of 2018.

Iran’s gas exports to Iraq, which now stand at 14 million cubic meters a day, are planned to reach the maximum capacity within three years, he added.

On June 22, at the beginning of summer, Iran started to export natural gas to Iraq after years of negotiations and settlement of financial problems.

Iran’s daily gas exports to Iraq are to reach 35 million cubic meters at the final stage.

Tehran and Baghdad signed a deal on the exports of natural gas from the giant South Pars Gas Field in 2013.

Under the deal, the Iranian gas is delivered to Sadr, Baghdad and al-Mansouryah power plants in Iraq through a 270-kilometer pipeline.

(Source: Tasnim, under Creative Commons licence)

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

On July 21, farmers complained about a gas pipeline dredging their farmlands. The pipeline carries gas from Iran to Baghdad through Bismayah, which is located in southeast Baghdad.

Meanwhile, reports on May 22 revealed that the pipeline caused damage to an archaeological site under which it passes.

On March 17, 2016, Iran announced the completion of a 100-kilometer (62-mile) Iranian gas pipeline. It starts at the South Pars gas field and continues to Baghdad to provide fuel for the electricity stations. As part of the project, the Oil and Energy Committee of the Iraq Council of Ministers decided to extend the pipeline through Bismayah to provide gas for electricity stations there.

Many residents in Bismayah were happy at first. However, their happiness did not last as they were forced to vacate parts of their land for the project. According to testimonies documented in a video report broadcast by an Iraqi channel on May 22, a farmer said that a military force stormed onto his land and forced him to accept the extension of the pipeline into his land without providing any documents, which he considered a violation of his rights and of applicable laws.

On July 12, Al-Monitor contacted the Nahrawan police directorate, which said, “The security force securing the site has orders to protect the project of extending the Bismayah gas pipeline and remove any constraints that may hinder its accomplishment.”

Iran‘s deputy oil minister has said gas exports to Iraq has reached 7-8m cubic metres per day and will increase as demand is growing, the official Islamic Republic News Agency (IRNA) reported on July 28.

Hamid Reza Araqi (pictured), who is also the head of the National Iranian Gas Company (NIGC), said Iraq has suggested an increase in gas imports from Iran.

An increase in gas production, as well as boosting the country’s capacities, will allow a rise in gas exports.

According to IRNA, Iran started exporting gas to Iraq on June 21 after a long pause.

The report cited security problems in Iraq as a result of armed insurgencies, had prevented gas exports before then.

The two countries have signed two contracts based on which Tehran is delivering gas to Baghdad and the Iraqi city of Basra in the south. IRNA also pointed out that Iraq continues to face severe electricity shortages and its power plants are in need of Iran’s gas.

IRNA forecasts gas exports to Iraq will increase to 35m cu.m p/d in the future.

(Source: GardaWorld)

Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia announced that the Islamic Republic has started exporting natural gas to neighboring Iraq.

The exports of natural gas to the Arab country began on Wednesday night, the Iranian deputy oil minister said.

Zamaninia also said the exports started with 7 million cubic meters (mcm) of natural gas on a daily basis in the first stage and will reach a maximum of 35 mcm.

It seems that after years of negotiations between Tehran and Baghdad on the project, the financial problems in the way of gas exports have finally been settled.

Back in October last year, the managing director of the National Iranian Gas Company (NIGC) had said that the country was fully ready to start exporting gas to Iraq as soon as the Arab country opens a line of credit (LC) for the project.

Iran laid 100 kilometers of pipelines for the gas project. The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.

The project is estimated to earn Iran $3.7 billion a year in revenues.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

The Planning Director of the National Iranian Gas Company (NIGC) has said that Iran has started work on the second pipeline for exports of natural gas from Iran to Iraq.

Hassan Montazer Torbati (pictured) said construction of the pipeline to south Iraq had begun on a Build-Operate-Transfer (BOT) contract.

The first pipeline is expected to be operational in the coming weeks.

(Source: Mehr News Agency)

(Picture: Shana)

The managing director of the National Iranian Gas Company (NIGC) said the Islamic Republic is fully ready to start exporting gas to neighbouring Iraq as soon as the Arab country opens a line of credit (LC) for the project.

“Iraqis are now negotiating with international banks so they can open an LC,” Hamid Reza Araqi said in a press conference in Tehran on Wednesday.

Iran has laid 100 kilometers of pipelines for the project through which 5 million cubic meters (mcm) of natural gas will be exported to Iraq daily in the first stage.

The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.

The project is estimated to earn Iran $3.7 billion a year in revenues.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

Iranian deputy oil minister Ali Kardor has reportedly urged Iraq to pay off its outstanding debts relating to the construction of a joint gas pipeline with the Islamic Republic.

According to Mehr News Agency, he said that if Baghdad fails to settle its outstanding debts, Tehran will not deliver gas to Iraq.

The two countries also have agreed for Iran to export 25 mcm of gas to Basra.

(Source: Mehr News Agency)

By John Lee.

Iran’s gas contracts with Iraq have been put on hold due to the difficulties in Iraq, Iranian Petroleum Minister Bijan Namdar Zangeneh said on Thursday.

“We have two gas contracts with Iraq and we are ready to export gas to Baghdad but they have some difficulty. It depends on Iraqi system,” Zangeneh said.

(Source: Sputnik)

A senior Iranian oil official said the country has started pumping gas into a pipeline that the Islamic Republic plans to use for exports of natural gas to Iraq.

“The pipeline is complete on the Iranian side and will be soon inaugurated by senior Iranian officials to start pumping gas into Iraq,” Managing Director of National Iranian Gas Transmission Company, Mohammad Ali Emam, told Shana news agency on Sunday.

Iran has laid 100 kilometers of pipelines for the project through which 5 million cubic meters (mcm) of natural gas will be exported to Iraq daily in the first stage.

The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline. The project is estimated to earn Iran $3.7 billion a year in revenues.

(Source: Tasnim, under Creative Commons licence)

BasNews reports that the Kurdistan Regional Government (KRG) is planning to build pipelines transporting oil and gas to and from Iran.

Abdullah Akrayi, the Head of the KRG’s Department of Relations with Iran, told BasNews that Erbil has resumed discussions with Tehran to establish two pipelines importing gas from Iran and sending KRG oil to Iran.

He said the KRG and Iranian officials discussed the details of the project during regular meetings last April, and Prime Minister Nechirvan Barzani tabled the proposal again while visiting Tehran last month.

In exchange for exporting gas to Iraqi Kurdistan, Iran is to receive KRG oil for two refineries in Kermanshah and Western Azarbaijan provinces, which will open the way for KRG oil to be sold through the Gulf.

Akrayi also revealed that Iranian officials have agreed to implement the project through a direct agreement with the KRG, without reverting to the central government in Baghdad.

(Source: BasNews)

(Pipeline image via Shutterstock)