Tehran, Baghdad gas pipeline deal

A final agreement on Iran's gas supply to Iraq is expected to be signed soon. Based on the agreement about 20-25 million cubic meters of Iran's natural gas will be transferred to Iraq per day through Iran's Western province of Ilam to supply the gas needed for Iraq's power plants. Iranian and Iraqi officials have already agreed on the details of the construction of the pipeline. The pipeline stretches for 170 km in Iran and 190 km in Iraq. The two sides are now making a decision about proper contractors for the project. Reports said that the Iraq's side of the pipeline will most likely be built by Iranian contractors. Earlier this month, a senior Iranian energy official announced that the country is due to export 25mln cubic meters of pipelined gas to Iraq. Managing Director of Iran's Gas Engineering and Development Company Ali Reza Qaribi said that building the pipeline will begin as soon as a new gas deal is signed between Iran and Iraq. "The 450-million-dollar project will be built by Iranian contractors," he noted. Iran has 137.6 billion barrels of proven oil reserves and 29.61 trillion cubic meters of proven gas reserves, ranking second in the world in both oil and gas reserves. According to the Iranian officials, Iran produces 600 million cubic meters of gas per day, 37 million cubic meters of which are exported.