|Iraq set to sign new contract on importing Iranian gas: Shahristani||
DAEGU, South Korea (Platts) — Iraq is set to sign a new contract covering gas imports from Iran, Iraqi deputy prime minister Hussain al-Shahristani said this week.
Shahristani, speaking on the sidelines of the World Energy Congress in Daegu, South Korea, also said a gas pipeline being built between Iran and Iraq could become operational sometime in November.
Iraq already has a four-year agreement with Iran, signed in July this year, for the supply of 850,000 Mcf/d of Iranian gas to Iraq's Mansuriya power plant in Diyala province and the Quds and Sadr plants in Baghdad province.
"In Iraq we have signed contracts with Iran to import gas for our power generations stations in the central part of the country. We are about to sign another contract to import Iranian gas in the south of the country," he said, giving no other details of the new contract.
"These are short-term contracts just to give us time to run new power stations on gas till other oil production is increased to a point where we have sufficient associated gas to be used for domestic needs," Shahristani said.
"The pipeline that we have already signed for is under construction," he said. "It should have been finished by July last year and now they tell us it will be ready next month."
Shahristani said Iraq could begin exporting gas after 2018-20. "There will be some gas available for export. All our neighbors, with the exception of Iran, have asked Iraq to supply them with gas. The European Union has asked us to supply Europe with gas," he said.
"However that Iraqi gas, the surplus gas will be available for perhaps 5-10 years. Beyond that, as our economy develops, as our local consumption increases, we will have to see if we find new gas fields. Then we can keep our exports of gas. If not there will be more of it for domestic needs."
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader