Iran to build ten CNG stations in Iraq

Iran plans to establish at least 10 compressed natural gas (CNG) stations in neighboring Iraq, an Iranian official says.

Amir Vakilzadeh, an official at the National Iranian Oil Products Distribution Company, said on Saturday that the construction of stations will start once a pipeline that would carry Iranian natural gas to Iraq has become operational by March 2015. He noted that the project will be carried out by Iranian private and state-run companies.

Based on a recent agreement signed between Tehran and Baghdad, 7 million cubic meters per day of Iran’s natural gas will be delivered to Iraq in the first phase.

Iran, which sits on the world’s largest gas reserves, intends to enhance gas production by increasing foreign and domestic investments, especially in its South Pars Gas Field.

South Pars is located in the Persian Gulf on the border between Iran and Qatar. The field is estimated to contain about 14 trillion cubic meters of gas and 18 billion barrels of gas condensate.