Iraq Gas from Iran Possible in May

Iran could begin natural gas exports to Iraq in May if security conditions improve, Iranian oil ministry website Shana quoted a senior official as saying on Monday.

Iran and Iraq signed an agreement in 2013 under which Tehran would start exporting gas to Iraq to feed three power plants in Baghdad and Diyala.

Completion of the pipeline, which has been delayed due to security concerns in Iraq, would initially allow delivery of four million cubic metres of gas per day (mcm/d) to Iraq and that could rise to 35 mcm/d, Shana said.

"In case security is established in Iraq, Iran's gas exports to Baghdad are projected to start in May," said Ali-Reza Kameli, head of the National Iranian Gas Exports Company.

In September, Iran said the scheduled start of gas exports to Iraq would be delayed because of fighting between Islamic State militants and Iraqi troops.

Iran has huge gas reserves and exports small quantities to Turkey, but it has been unable to increase production quickly enough to meet its own demand for the fuel. Northern Iran relies heavily on gas imports from Turkmenistan, especially for heating in winter.

The OPEC oil producer is in talks with six Western powers aimed at reaching a deal to limit Tehran's nuclear programme and end sanctions on oil and gas investment and trade with Iran.

Reporting by Rania El Gamal