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Iran-Iraq gas pipeline will be officially inaugurated next week. said Spokesman of the National Iranian Gas Company (NIGC) Majid Bujarzadeh.
He said the pipeline for gas exports to Baghdad was replete with natural gas though Letters of Credit (LCs) first needed to be opened for the process to be resumed.
He reiterated that Iran is ready to inject gas into the export pipeline. and said. The Iraqi side is still unprepared to receive Iran`s natural gas.
Bujarzadeh underlined that the banking issues had to be fully resolved before Iran`s gas could be deployed to Iraq.
A letter of credit is a letter from a bank guaranteeing that a buyer`s payment to a seller will be received on time and for the correct amount. he added.
Bujarzadeh said that NIGC Managing Director Hamidreza Araqi will attend the unveiling ceremony on Tuesday and the second part of the sixth national pipeline with a length of 600 kilometers is still under construction.
The sixth national gas pipeline network has the capacity to carry 110 million cubic meters per day through which natural gas would be exported to Iraq and Syria.
National Iranian Gas Company and the Iraqi Ministry of Electricity and Power signed a gas contract in 2013 and it was in 2016 that an extension was added to the deal in order to increase its volume and duration.
Gas exports will begin at seven million cubic meters per day and is scheduled to reach the highest level envisaged in the contract after 21 months.
The deal for gas exports to Basra was also inked in 2015 as the second oil sale agreement to Iraq according to which 35 and 25 million cubic meters of natural gas will be exported to the Iraqi region in cold and hot seasons. respectively.
With nearly three years after signing of the gas contract between Iran and Iraq. gas exports to the neighboring country has faced standstills and delays mainly due to activities of ISIL terrorist group`s activities. and also because of Iraq’s non-compliance to fulfillment of contractors` financial claims.
