Iran Starts Gas Exports to Iraq
Restricted Iranian gas flows to Iraq have started, one year behind schedule.
Iran’s deputy oil minister for trade and international affairs, Amir Hossein Zamaninia told the country’s press agency IRNA that Iran started delivering 7mn m3/d of gas to Iraq (equivalent to 2.55bn m3/yr). Iraq is to use the gas imports in its power plants.
Iran has two agreements with Iraq to export 25mn m³/d of gas to Baghdad and 25mn m³/d to Basra signed in 2013 and 2015 respectively, for a total of 50mn m3/d (18.25bn m3/yr). In order to implement the supply contracts, Iran is to complete Iran Gas Trunkline 6 (Igat 6) with 110mn m3/d transit capacity to deliver South Pars gas to western regions and Iraq.
NIGC’s head of dispatching Ali Shakarami told NGW that Iran plans to complete Igat 6 by the end of the current fiscal year that ends March 20, 2018.
Iran is to increase gas production from South Pars by 20% in the current fiscal year, he added. Last year Iran produced 155bn m3/yr of gas from South Pars, compared to 130bn m3/yr in the previous fiscal year. Total gross gas production level reached 285bn m3/yr last fiscal year, of which the refined gas amount stood at 204.77bn m3, according to an official document from the oil ministry seen by NGW.
BP’s annual statistical review put the calendar 2016 volume at 202.4bn m3/yr.
Currently, Iran exports limited gas volumes from fields in Ilam Province to Iraq. Payment problems caused the setback of gas exports by over a year.
Iraq flares gas, but imports Iranian electricity
Iraq imported 5.753 terawatt-hours of power from Iran in 2016, according to Iran’s official statistics, representing 75.6% of total Iranian electricity exports.
One reason why Iraq is so dependent on power imports is that it produced only 1.1 bn m3/yr of sales gas production in 2016, all consumed domestically.
In contrast it flared 16.2bn m3/yr, making it the second-largest gas flaring country in the world after Russia, of which 65% in the Basra area alone, one area that Iran will shortly be supplying. Iraq recently declared it wants to stop all routine gas flaring by 2030.
Azerbaijan Desk