Iran has prepared the final draft of a deal that could see Iranian gas start flowing to Iraq before the end of the year, an official at the National Iranian Gas Company (NIGC) has said, conditional on an improvement in Iraq’s precarious security situation as a consequence of the ongoing battles with Islamic State (IS).

The draft, drawn up on the back of four days of talks with a visiting Iraqi delegation in Tehran, came out of a July 2013 deal between the two countries for the supply of 850mn cfd (8.8 bcm/year) of Iranian gas to fuel power plants in Baghdad and Diyala province (MEES, 26 July 2013). (CONTINUED - 603 WORDS)