TEHRAAN - Iranian Oil Minister Bijan Namdar Zanganeh has said that Iran is bound by its deal for exporting natural gas to Iraq.
Although the deal was signed by the former administration, but the new government is committed to its obligations, the Mehr News Agency quoted him as saying on Saturday.
In July, Iran and Iraq signed a deal according to which Iran will supply natural gas to Al-Baghdad, Al-Mansouriyah and Sadr power plants in Iraq.
The deal was signed by former Iranian Oil Minister Rostam Qasemi and his Iraqi counterpart Abdul Kareem Luaibi in Baghdad.
According to the deal, Iran would pump 25 million cubic meters of natural gas per day to the Iraqi power plants.
Based on the agreement, Iran would earn $3.7 billion a year from natural gas exports to Iraq.
Deputy Iranian Oil Minister Javad Owji has said that the operation for the construction of the pipeline for transferring the gas has started both in Iraq and Iraq. It is predicted the construction of the 227-kilometer-long pipeline in Iran would be completed by September.
He put the cost of the 48-inch pipeline at 342 million dollars.
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