By execution of gas contract with Iraq in the first phase, Iran will be able to provide 65 to 70 percent of Baghdad, and 30 to 35 percent of total Iraq’s gas needs, managing director of the National Iranian Gas Company (NIGC), Javad Owji said.
Owji stated last year Iran’s gas imports stood at 4 billion cubic meters (bcm) while its exports hit 8 bcm adding the country now exports 35 to 37 million cubic meters (mcm) of gas per day that by execution of the new contract with Iraq will reach 55 to 60 mcm/d and will hit 75 to 80 mcm/d in the second phase of gas deals with Iraq implying rising total gas exports by more than 2.5 times.
Elsewhere in his remarks, he said several gas contracts would be finalized in the near future stating gas contract with Iraq will facilitate concluding gas contracts with other countries in the Persian Gulf region, Iran’s SHANA news agency reported.
Owji said: “diversification of gas export routes to Europe is the other advantage of Iran-Iraq contract which in addition to Turkey will open a second route for gas transfer to Europe, an issue that has been approved by Iraqi and Syrian governments.”
He went on to say that by gas transit through Iraq and Syria not only the two countries will earn transit revenues but it will boost Iran’s bargaining power in negotiations for gas export to Europe.
Owji noted that during the signing ceremony of the gas contract in Baghdad, Iraqi side asked Iranian contractors to take part in laying a gas pipeline in the country, building Iraq’s gas network and stressed on necessity of finalizing the second gas contract as soon as possible.