The Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araki said the Islamic Republic is fully prepared to start exporting gas to neighboring Iraq, as soon as the Arab country opens a line of credit (LC) for the project.
“The Iraqis are currently negotiating with international banks, so that they can open a line of credit,” said Hamid Reza Araki at a press conference in Tehran on 19 October. Once they manage to do so, Iran is ready to start gas exports to the Arab country, the official added.
Iran has laid 100 kilometers of pipelines for the project, through which 5 mcm of natural gas will be exported to Iraq daily in the first phase.
The two countries signed a deal to export natural gas from the giant gas field South Pars back in 2013. Under the agreement, 25 thousand cubic meters of gas will be delivered to the power station in Sadr City, Baghdad and Al-Mansour through a 270-kilometer pipeline. The project will enable Iran to earn $ 3.7 billion per year, reports Iran.ru.