Iran finalised a major contract worth $3.7 billion a year to export gas to neighbouring Iraq. It was unclear how the transactions would be conducted as Iran’s access to the global banking system was being severely monitored by international sanctions over its nuclear ambitions. Under the terms of the contract signed in Baghdad on Sunday, Iran would eventually feed Iraqi refineries with 25 million cubic metres of gas per day, Javad Ouji said. Iran already had a $7.5 billion gas pipeline project deal with Pakistan in 2010 to export 21 million cubic meters (742 million cubic feet) per day, but the plan had repeatedly run into trouble amid US opposition to the deal. Iran sits on the world’s second largest natural gas reserves and currently produces some 600 million cubic metres a day, almost all of which is consumed domestically due to lack of means of exports.
