Iraq's electricity ministry said on Sunday it has signed an initial agreement with Iran to import natural gas for power generation.
Under the memorandum of understanding between the two neighbours, the Islamic Republic of Iran will install a pipeline through Iraq and supply it with gas that would be used to feed two power plants in Baghdad, the electricity ministry said.
Iraq will buy 25 million cubic metres of gas each day from Iran under the five-year deal, according to international prices, which would generate 2,500 megawatts.
The gas pipeline will pass through Iraq's Mansuriyah gas field near the Iranian border in volatile Diyala province. The gas would supply a power plant in Sadr City in northern Baghdad, and another plant in the northern outskirts of Baghdad. The pipeline will be completed in 18 months.
The MOU still needs the approval of the Iraqi cabinet and parliament.
Iraq has struggled for years with power blackouts and risks years more of electricity shortages. Eight years after the U.S.-led invasion, Iraqis receive only a few hours of power a day from the national grid and the shortage has been a key complaint at recent nationwide protests.
The OPEC member signed an initial contract with South Korean group KOGAS Kuwait Energy Company, and Turkey's state-owned TPAO last year to develop the Mansuriyah natural gas field.
TEHRAN, May 23 (Mehr News Agency) - Production of gas in the South Pars gas field hit 7 billion cubic meters in the first Iranian calendar month of Farvardin (ended on April 20, 2011), IRIB quoted an official with the Pars Oil and Gas Company as saying here on Monday.
Farrokh Alikhani added that the amount was produced in 10 phases of the South Pars field and was injected to the cross-country gas network.
Referring to the fact that each phase of the field produces 25 million cubic meters of gas, Alikhani added: "40 percent of the country's gas demand is produced in the South Pars field."
He also remarked that each phase of the field produces 40 thousands barrels of gas condensate per day which is exported to Europe and South-East Asia, especially Japan.
The South Pars gas field is located in the Persian Gulf on a border zone between Iran and Qatar. The field's reserves are estimated at 14 trillion cubic meters of gas and 18 billion barrels of liquefied natural gas.
Known as the world's largest gas field, South Pars holds an estimated 50.97 trillion cubic meters of gas and some 50 billion barrels of condensates.
The gas field covers an area of 9,700 square kilometers, of which 3,700 square kilometers (South Pars) is in the Iranian territorial waters and 6,000 square kilometers (North Dome) is in Qatar's territorial waters.
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