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Iraq, Iran, Syria sign $10 billion gas-pipeline deal

26 July 2011 10:42 (UTC +04:00)

The document was inked in the Assalouyeh industrial region located in the southern province of Bushehr by Iranian oil minister Mohammad Aliabadi, Iraq’s oil minister Abdul Kareem Luaiby, and Syrian counterpart Sufian Alow, the agency said.

Iraqi oil officials confirmed that Mr. Luaiby was in Iran to sign the agreement. They gave no further details.

Iranian oil officials said Syria would purchase between 20 million to 25 million cubic meters a day of Iranian gas. Iraq has already signed a deal with Tehran to purchase up to 25 million cubic meters a day to feed its power stations.

The project requires some $10 billion investment and will be constructed within three years, the semi-official Iranian news agency Mehr reported.

The pipeline length is more than 1,500 kilometers and will run from Assalouyeh to Damascus while passing through Iraq, with a transfer capacity of 110 million cubic meters of natural gas a day, it said.

The gas will be produced from the Iranian South Pars gas field in the Gulf, which Iran shares with Qatar, and holds estimated reserves of 16 trillion cubic meters of recoverable gas.

Iranian officials have said Iran is producing some 600 million cubic meters of gas a day, of which only 37 million cubic meters are exported. Tehran also aims to extend the pipeline to Lebanon and the Mediterranean to supply gas to Europe, they said.

Iran has been approaching its allies in the region such as Iraq and Syria to export its gas after western firms have pulled out of Iran’s lucrative energy sector because of international dispute over Tehran’s nuclear program, which the West and the U.S. suspect is aimed at producing nuclear bombs. caq.