Iran has started to export natural gas to Iraq under the first of the two supply agreements which were signed between both countries in 2013 and 2015, respectively. Iranian authorities have announced that gas exports to Baghdad have reached approximatively about 7 mcm/d and should reach 35 mcm/d in the near future. The exports are conveyed through the Iran-Iraq pipeline, which was inaugurated in January 2017.
The National Iranian Gas Company (NIGC) and the Iraqi Ministry of Electricity and Power signed a first gas deal in 2013 but it was only in 2016 that an extension was added to the contract in order to increase its volume and duration. This contract is meant to supply the Baghdad and Diyala provinces and in particular the local power plants. Iran commits to export a maximum of 35 mcm/d of gas to Iraq for a period of 6 years, which will be mostly used for power generation. The original contract also includes the possibility of an extension to 10-25 years.
A second supply deal was signed in 2015 to pipe Iranian gas to Basrah (Iraq) for a period of 6 years. The contract mentions volumes of 7 mcm/d for the first 6 months and then 14-18 mcm/d after 12 months and then 20-35 mcm/d.
The start of gas deliveries was delayed by Western sanctions against Iran, that have hindered the development of gas projects, and by security concerns in Iraq.
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