Iraq Says it Signed Deal to Import Iranian Natural Gas for Power Plants

Iraq signed an initial agreement to import 25 million cubic meters of natural gas a day from Iran for power stations, Mosaab Serri, a spokesman for the Iraqi Ministry of Electricity, said.

The agreement provides for the installation of pipelines within 18 months to transport gas from Iran to the Sadr and al- Quds power stations in Baghdad, he said in an e-mailed statement today.

The agreement with Iran, which holds the world’s second- largest gas reserves, requires the approval of the Iraqi Council of Ministers and Parliament, the statement said.

The pipelines will pass the Mansouriya gas field, which is due to supply gas to the two power plants instead of Iran starting 2016, the statement said. Kuwait Energy Co., Turkiye Petrolleri AO and Korea Gas, known as Kogas, secured rights to develop Mansouriya. The license, granted last year along with two other natural-gas contracts, has yet to be officially ratified by the Iraqi Council of Ministers.

To contact the reporter on this story: Nayla Razzouk in Amman at nrazzouk2@bloomberg.net

To contact the editor responsible for this story: Inal Ersan at iersan@bloomberg.net

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