Iran eyeing broad energy ties with neighbors

Iran has drafted a broad plan for expansion of energy ties, specially in the gas sector, with the neighboring countries, Iranian Oil Minister Rostam Qassemi said. Addressing a ceremony held to mark the endorsement of a gas contract with Iraqi officials in Baghdad, Qassemi said, \" Bilateral negotiations have been underway since two years ago. He added under the terms of the contract Iran will export 25 million cubic meters of gas per day to the neighboring country to meet fuel needs of Sadr and Al- Mansoureh power plants through a 227 km pipeline in Iran territory.\" Meanwhile, Managing Director of the National Iranian Gas Company (NIGC) Javad Oji told Shana that gas export to Iraq will take place through one of offshoots of the Sixth Iran’s Gas Trunkline which its gas transfer capacity per day stands at 110 mcm, half of it is used for domestic consumption and half for export. \"Under the contract signed with Iraq’s minister of electricity, 25 million cubic meters of gas per day will be delivered to Sadr and Al-Mansoureh power plants via the gas pipeline crossing Ilam border,\" Oji said. Stating the deal will make 3.7 billion dollars revenue for the country each year, Oji said the two sides are also engaged in negotiations for signing a second gas contract which will transfer 20 million cubic of gas per day to Basra power plant via a pipeline that is slated to connect Khoramshahr  to Basra Port in Iraq.