TEHRAN- The pipeline for exporting Iran’s gas to Iraq will be ready by the end of the fifth Iranian calendar month of Mordad (August 22), according to an official with Iran’s Oil Ministry.

Alireza Gharibi, the managing director of Iranian Gas Engineering and Development Company, said upon the completion of the pipeline Iran will initially export 5 million cubic meters (mcm) of gas per day to Iraq, which can reach 25 mcm per day, the Shana News Agency reported on Sunday.

The two countries signed an agreement over the exports of natural gas from South Pars energy hub to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.

The project is estimated to earn Iran $3.7 billion a year in revenues, according to Press TV.

Iran, which sits on the world’s largest gas reserves, intends to enhance gas production by increasing foreign and domestic investment, especially in its South Pars gas field. 

South Pars gas field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar’s territorial waters.

The field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate. 

MA