DUBAI, Dec 7: Iran expects to begin exporting gas to neighbouring Iraq by July next year, with initial volumes at 7 million cubic metres per day, a senior Iranian energy official said on Saturday.

Iraq’s electricity ministry said earlier this year it had signed an agreement to import natural gas from Iran through anew 220 kilometre pipeline to feed three power plants in Baghdad and Diyala provinces.

“Gas exports to Baghdad will begin next July, with an initial capacity of 7m cubic metres (per day),” the head of Iran’s national gas export company Ali Reza Kameli was quoted as saying by state news agency IRNA.

Under the contract, which has a duration of 10 years, Iranian gas exports to Iraq will rise to 25m cubic metres per day by 2015 and ultimately 40 mcm/day. Iraqi officials including Prime Minister Nouri al-Maliki visited Iran this week and discussed strengthening ties, particularly economic.

Kameli said the two countries were also preparing to finalise a contract in the coming weeks for Iran to export another 50 mcm/day of gas to Iraq’s southern city of Basra.

Iranian Oil Minister Bijan Zanganeh said he hoped most of phases 12, 15 and 18 would be complete by the end of the Iranian year in March 2015. “There is a lag in digging operations in some of the phases, but we are trying to conclude these phases under the current programme,” IRNA quoted Zanganeh as saying.—Reuters