Iraq signs deal to import Iranian gas for power generation

• 10 years ago (2013-07-23)
• David Flin

Middle East 312 North America 998

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Iraq has signed an agreement to import natural gas from Iran for power generation. Under the terms of the contract, Iran will install a pipeline into Iraq and supply gas that will be used to feed power plants in Baghdad and Diyala provinces.

Iraq will buy the contracted gas according to international prices each day from Iran under the four-year deal, which could be extended, generating 2500MW.

The 42-inch, 220km gas pipeline will pass through Iraq’s Mansuriyah gas field near the Iranian border, through the volatile province of Diyala to supply a nearby power station and reach Baghdad, where it will branch into two lines that will supply two power plants. The pipeline is due to be completed in two months, and is being built by Iran Consulting Group (ICG) under a contract worth $365 million.