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Iran to build 220-km natural gas pipeline to Iraq

Updated: 2012-05-05 19:02
( Xinhua)

TEHRAN - Director of Iran Gas Engineering and Development Company said that Iranian local contractors will build a 220-km natural gas pipeline to Iraq, the semi-official Mehr news agency reported Saturday.

A total of $450 million will be invested in the construction of the pipeline to transport Iran's natural gas to neighboring Iraq, Alireza Gharibi told Mehr.

The construction design of project has been finished and the pipeline will be built by local contractors, Gharibi was quoted as saying.

The pipeline will transfer about 25 million cubic meters of Iranian natural gas per day for five years, he said, adding that the gas will be used to operate the Baghdad and Mansourieh power plants in Iraq.

Gharibi said that building the pipeline will begin as soon as a new gas deal is signed between Iran and Iraq, according to local Fars news agency.

In July 2011, Iran, Iraq and Syria signed a major gas deal to transfer the country's natural gas from South Pars gas field to Europe.

Dubbed as "Islamic Gas Pipeline" contract, the agreement was signed between the Oil Ministries of three countries in Iran's southern Bushehr province.

Iran's Deputy Oil Minister Javad Oji said on the sidelines of the gas deal ceremony that 10 billion dollars would be invested to implement the construction of the 5,600 km pipeline.

Iran has the world's second largest gas reserves after Russia but has struggled for years to develop its oil and gas resources.