(MENAFN) The Iraqi electricity ministry announced Monday that the country has signed a contract to import natural gas from neighboring Iran to generate power, Khaleej Times reported.
The contract states that Iran will have to run a pipe to supply Iraq with 850 million cubic feet of gas that will go to three power plants, two in Baghdad and one in Diyala.
The pipeline will be 42 inches wide and 220 kilometers wide and will go through Mansuriyah gas field in Iraq. The electricity ministry said that the USD365 million pipeline is under construction by Iran Consulting Group (ICG) and is expected to be operational in two months.
Iraq will buy the gas at international prices during the extendable four year contract.
The US is using sanctions preventing Iran from exporting its oil and gas as leverage to end Iran's nuclear program.
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