Iran to sign oil deal with Iraq while 'friendship' pipeline still underway
Deputy Iranian Oil Minister Javad Owji said Saturday that the agreement would be signed by Iranian Oil Minister Rostam Qasemi and his Iraqi counterpart, Abdul Kareem Luaibi, in Baghdad on Sunday.
Noting that negotiations between the two countries’ officials have been under way since two and a half years ago, Owji said that Iran would be pumping 25 mcm per day of natural gas to the two Iraqis power plant. The official stated that Iran would receive nearly USD 10 million a day and USD 3.7 billion a year from natural gas exports to Iraqi power plants.
This is while the construction of the “friendship” pipeline between Iran, Iraq and Syria has been under way since last year. The pipeline will be designed to enable gas delivery to other Muslim countries like Jordan and Lebanon in the future.
The pipeline will stretch from Assaluyeh, near the massive offshore South Pars Gas Field in southern Iran, and will continue into neighboring Iraq to feed Iraqi power plants running on gas. Iran, which sits on the world's second largest natural gas reserves after Russia, is making efforts to up its gas production by increasing foreign and domestic investments, especially in South Pars Gas Field.