The pipeline to carry gas to Iran’s western and northwestern regions as well as exporting it to neighboring Iraq will start soon with BOT (Build-Operate-Transfer) financing from Bank Pasargad, the bank’s CEO has said.
Majid Qasemi said, “We have increased our investment for the development of oil, gas, refining, and petrochemical industries. The contract to finance the Iraq gasline is worth more than 2 billion dollars which will generate 4.2 billion dollars a year.”
The project includes laying 660 kilometers of pipeline and construction of five gas pressure boosting stations in two years.
Iran and Iraq have finalized the development plan for construction of the gas pipeline to carry gas to the neighboring Arab country, and its contract is in final stage of being drafted, the international relations director at the National Iranian Gas Company (NIGC) said in September.
“The Iraqi side has started the initial executive work too” Azizollah Ramezani said.
The pipeline will be fed by the massive offshore South Pars gas field in southern Iran which it shares with Qatar in the Persian Gulf and is estimated to contain 14 trillion cubic meters of gas and 18 billion barrels of condensate.
Iraq needs Iranian gas for power generation to solve a part of its load-shedding problem which is causing unrests in parts of the country during hot summer days.
Besides the gas supply, Iran will also provide neighboring Iraq with training programs for its technical, financial and executive manpower.