National Iranian Gas Company (NIGC)


Iran to Boost Gas Exports to Iraq

A top Iranian energy official unveiled plans for a rise in natural gas exports to neighboring Iraq next year.

In an interview with Tasnim on Saturday, Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi said the country’s exports of natural gas to Iraq will increase during the spring and summer of 2018.

Iran’s gas exports to Iraq, which now stand at 14 million cubic meters a day, are planned to reach the maximum capacity within three years, he added.

On June 22, at the beginning of summer, Iran started to export natural gas to Iraq after years of negotiations and settlement of financial problems.

Iran’s daily gas exports to Iraq are to reach 35 million cubic meters at the final stage.

Tehran and Baghdad signed a deal on the exports of natural gas from the giant South Pars Gas Field in 2013.

Under the deal, the Iranian gas is delivered to Sadr, Baghdad and al-Mansouryah power plants in Iraq through a 270-kilometer pipeline.

(Source: Tasnim, under Creative Commons licence)

Iran says Gas Exports to Iraq set to Increase

Iran‘s deputy oil minister has said gas exports to Iraq has reached 7-8m cubic metres per day and will increase as demand is growing, the official Islamic Republic News Agency (IRNA) reported on July 28.

Hamid Reza Araqi (pictured), who is also the head of the National Iranian Gas Company (NIGC), said Iraq has suggested an increase in gas imports from Iran.

An increase in gas production, as well as boosting the country’s capacities, will allow a rise in gas exports.

According to IRNA, Iran started exporting gas to Iraq on June 21 after a long pause.

The report cited security problems in Iraq as a result of armed insurgencies, had prevented gas exports before then.

The two countries have signed two contracts based on which Tehran is delivering gas to Baghdad and the Iraqi city of Basra in the south. IRNA also pointed out that Iraq continues to face severe electricity shortages and its power plants are in need of Iran’s gas.

IRNA forecasts gas exports to Iraq will increase to 35m cu.m p/d in the future.

(Source: GardaWorld)

Iran, Iraq Agree to Build Kirkuk Pipeline

Iranian Oil Minister Bijan Zanganeh said Tehran and Baghdad have reached an initial agreement to build a pipeline that would export crude oil from the northern Iraqi fields of Kirkuk via Iran.

Iran and Iraq are ready to promote their cooperation in the area of energy, Zanganeh said on Sunday after a meeting with his Iraqi counterpart Jabar al-Luaibi in the Iranian capital, Tehran.

The two sides also agreed to construct a joint pipeline to pipe Iraq’s oil through Iran, he added, noting that agreements were also reached about an international company that will carry out a feasibility study of the project.

Iran and Iraq signed a memorandum of understanding in February to study the construction of the pipeline.

The Iranian oil minister also said that the Islamic Republic would begin exporting gas to the Iraqi city of Basra in coming months.

He said there had been some problems in receiving payments for current gas exports to Iraq via banks and that Iran was receiving cash payments.

Al-Luaibi, for his part, described Tehran-Baghdad ties as “strong”, saying that they had discussed transferring Iraqi crude oil to Iranian refineries and returning byproducts to Iraq.

He added that the two ministers also reached an initial agreement to develop the oil fields that the two countries share in the near future.

Back in October last year, the managing director of the National Iranian Gas Company (NIGC) had said that the country was fully ready to start exporting gas to Iraq as soon as the Arab country opens a line of credit (LC) for the project.

Iran laid 100 kilometers of pipelines for the gas project. The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.

(Source: Tasnim, under Creative Commons licence)

Iran Begins Exporting Natural Gas to Iraq

Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia announced that the Islamic Republic has started exporting natural gas to neighboring Iraq.

The exports of natural gas to the Arab country began on Wednesday night, the Iranian deputy oil minister said.

Zamaninia also said the exports started with 7 million cubic meters (mcm) of natural gas on a daily basis in the first stage and will reach a maximum of 35 mcm.

It seems that after years of negotiations between Tehran and Baghdad on the project, the financial problems in the way of gas exports have finally been settled.

Back in October last year, the managing director of the National Iranian Gas Company (NIGC) had said that the country was fully ready to start exporting gas to Iraq as soon as the Arab country opens a line of credit (LC) for the project.

Iran laid 100 kilometers of pipelines for the gas project. The two countries signed a deal on the exports of natural gas from the giant South Pars Gas Field to Iraq back in 2013.

Based on the agreement, 25 mcm of gas will be delivered to Sadr, Baghdad and al-Mansouryah power plants through a 270-kilometer pipeline.

The project is estimated to earn Iran $3.7 billion a year in revenues.

(Source: Tasnim, under Creative Commons licence)

Iran to Build New Gas Export Pipeline to Iraq

By John Lee.

The Planning Director of the National Iranian Gas Company (NIGC) has said that Iran has started work on the second pipeline for exports of natural gas from Iran to Iraq.

Hassan Montazer Torbati (pictured) said construction of the pipeline to south Iraq had begun on a Build-Operate-Transfer (BOT) contract.

The first pipeline is expected to be operational in the coming weeks.

(Source: Mehr News Agency)

(Picture: Shana)

Iran, Iraq Sign 6-Year Gas Deal

Iran has agreed to send 35 mcm/d of its gas to the Iraqi city of Basra for a period of 6-years.

Based on the deal, signed by Head of National Iranian Gas Company (NIGC) Reza Araqi and Iraqi Deputy Minister of Electricity Khalid Hassan Saleh, Iran will supply 20mcm/d of natural gas to Basra in cold seasons and 35mcm/d in hot seasons of the year.

Gas exports to Basra will start with a daily volume of 7 mcm which could increase to 20 mcm/d in three phases.

Iran has prepared the required infrastructures to send gas to neighboring Iraq.

The deal makes Iraq Iran’s biggest gas customer as it allows the selling of 40 mcm/d to 65 mcm/d of its gas to Iraqi cities.

Iran will start constructing the required pipelines and pressure boosting facilities within the next 1.5 years to supply the amount to Iraq, Araqi told Shana following the deal’s signature.

The gas will be fed to Iraq’s gas network from Iran’s 6th gas trunkline (IGAT 6), he added. An offshoot of IGAT will cross Iranian city of Khorramshahr to reach Basra. IGAT 6 transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.

The price of the gas is confidential, but it has been set in accordance with regional market’s norms, said the official.

“Exporting gas to Iraq will boost trade between the two countries,” Araqi said.

During the deal’s 6 year, 40 billion cubic meters of gas will be supplied to Iraq, also said director of international affairs of NIGC.

Iraq has initiated a number of development projects in its energy sector and that is why the deal’s duration is only 6 years, Azizollah Ramezani said.

“If Iraq’s development projects fail to boost its gas output, the deal may be extended and there is room for more cooperation in this regard,” he added.

Iran has several gas deals with neighboring states like gas exports to Turkey, gas swap with Azerbaijan, gas-for-power barter with Armenia, and gas exports to Pakistan, which are yet to become finalized.

Part of the gas to Iraq will be used for generation of gas to address some of Iraq’s electricity troubles.

The country, also an OPEC member, is facing serious load-shedding and Iranian companies are operating 33 megaprojects, worth $1.5 billion, in Iraq for the time being.

(Source: Shana)

Iran, Iraq Sign 6-Year Gas Deal

Iran has agreed to send 35 mcm/d of its gas to the Iraqi city of Basra for a period of 6-years.

Based on the deal, signed by Head of National Iranian Gas Company (NIGC) Reza Araqi and Iraqi Deputy Minister of Electricity Khalid Hassan Saleh, Iran will supply 20mcm/d of natural gas to Basra in cold seasons and 35mcm/d in hot seasons of the year.

Gas exports to Basra will start with a daily volume of 7 mcm which could increase to 20 mcm/d in three phases.

Iran has prepared the required infrastructures to send gas to neighboring Iraq.

The deal makes Iraq Iran’s biggest gas customer as it allows the selling of 40 mcm/d to 65 mcm/d of its gas to Iraqi cities.

Iran will start constructing the required pipelines and pressure boosting facilities within the next 1.5 years to supply the amount to Iraq, Araqi told Shana following the deal’s signature.

The gas will be fed to Iraq’s gas network from Iran’s 6th gas trunkline (IGAT 6), he added. An offshoot of IGAT will cross Iranian city of Khorramshahr to reach Basra. IGAT 6 transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.

The price of the gas is confidential, but it has been set in accordance with regional market’s norms, said the official.

“Exporting gas to Iraq will boost trade between the two countries,” Araqi said.

During the deal’s 6 year, 40 billion cubic meters of gas will be supplied to Iraq, also said director of international affairs of NIGC.

Iraq has initiated a number of development projects in its energy sector and that is why the deal’s duration is only 6 years, Azizollah Ramezani said.

“If Iraq’s development projects fail to boost its gas output, the deal may be extended and there is room for more cooperation in this regard,” he added.

Iran has several gas deals with neighboring states like gas exports to Turkey, gas swap with Azerbaijan, gas-for-power barter with Armenia, and gas exports to Pakistan, which are yet to become finalized.

Part of the gas to Iraq will be used for generation of gas to address some of Iraq’s electricity troubles.

The country, also an OPEC member, is facing serious load-shedding and Iranian companies are operating 33 megaprojects, worth $1.5 billion, in Iraq for the time being.

(Source: Shana)