Senior Iraqi and Iranian energy officials on 21 July finalized a deal for Iraq to import some 850mn cfd (8.8 bcm/year) of Iranian gas. The deal, sure to raise eyebrows in Washington, is just one of a series of politically-charged energy export projects being sponsored by Iran and/or Iraq.

Such projects include: Iran’s planned 750mn cfd ‘Peace Pipeline’ to Pakistan and Iraq’s 1mn b/d crude export pipeline to Jordan (this includes a 2-3bcm/year gas export element and a potential northern crude spur to Turkey via Haditha in western Iraq - see map). The four-year Baghdad-Iran supply agreement is essentially an interim measure to provide much needed feedstock to power plants before Iraq’s own rising gas production can meet demand. Gas would start flowing in two months via a 227km 42-inch pipeline which is 90% complete, according to statements from the Iraqi Electricity ministry and Iranian press reports. (CONTINUED - 591 WORDS)