Iraq pipe-dreaming as Iran readies natural gas supply-line

Iran is set to open up a pipeline supplying natural gas to Iraq according to a recent statement from Iran's oil minister, with operations poised to start in the coming days.

Bijan Zanganeh, was quoted in Iran's state affiliated Tasnim news agency over the weekend stating that the natural gas supply line would be opened up on Tuesday, based on an agreement signed by both states back in 2009. 

According to Rudaw the pipeline will supply up to 50 million cubic-metres of gas per day, potentially generating 3,500 megawatts of power per day.

Originally slated to begin in 2013 the deal was delayed due to security issues in Iraq, in addition to delayed payments from Baghdad, with its enforcement coming off the back of two months of negotiations.

The pipeline will connect the South Pars/North Dome Gas field shared by Iran and Qatar - the largest natural gas field in the world - with the Iraqi city of Basra, the location of Iraq's largest natural gas plants.

Iran and Iraq signed a previous deal in October 2016 stipulating the supply, by Tehran, of between 25-40 million cubic metres of gas to an oil station in Iraq's Basra province. 

Although Iraq is one of the most important oil producing states within OPEC Baghdad has proved incapable of meeting resident's domestic electricity needs, in part due to the country’s energy infrastructure being detrimentally affected by the emergence of the Islamic State group. 

Over Summer 2016 Iraq's peak electricity demand was around 21,000 megawatts but the grid only able to produce some 13,000 watts megawatts, according to Reuters reports at that time. 

Iran and Iraq fought an eight-year war in the 1980s in which hundreds of thousands were killed, but ties have improved since the ouster of Saddam Hussein during the 2003 U.S. invasion. 

However, while many of Iraq’s Shia political class have favourable relations with Iran Tehran is also routinely accused of having an overbearing influence on Iraqi domestic politics, both by other Iraqi political figures, and foreign actors.