Delegates of Iran and Iraq are engaged on a contract to supply Iranian gas to Baghdad. It was reported by the Iranian agency FARS referring to the statement of Javad Oji, the managing director of National Iranian Gas Company (NIGC).
As explained by Oji, the volume of gas supply per 24 hours is supposed to be 25 million cubic meters. The NIGS executive officer mentioned that the talks concerning the gas export conditions had lasted for two years.
Javad Oji did not specify the contract value; he just made a point that the supply price would be estimated for the Iraqi partner using the same formula as for the gas exports from Iraq to Turkey. With the aim of the supplies to Iraq, the Iranian side has to complete the gas pipeline construction in the west of Iran in the near future.
Agence France-Presse noted that the contract value could come up to $3.7 billion per year.
Alireza Nikzad-Rahbar, an Oil Ministry official, announced in January that the gas exports to Iraq could start in summer 2014. Later on, Javad Oji mentioned that thanks to the contracts with Turkey and Iraq, NIGS could increment proceeds from the fuel exports from the current $3.5 billion to $10 billion.
Iran accommodates the second largest gas resources in the world. The country produces almost 600 cubic meters of gas per 24 hours. However at present, Iranian fuel exports are restricted due to economic penalties imposed against the Islamic republic by the US and Europe. In such a way, they try to make Teheran give up the nuclear program implementation that is focused on designing the atomic bomb and that causes alarm in the west. Iran insists that the nuclear program serves entirely peaceful purposes.
