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Iran, Iraq to finalize new gas deal

A senior Iranian energy official says Tehran and Baghdad will soon finalize a deal under which Iran will pump natural gas to its western neighbor to fuel power plants in the southern Iraqi province of Basra.

The agreement will see Iran export 25 million cubic meters (mcm) of natural gas per day to Iraq to fuel Basra power stations, said Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi on Monday.

Araqi said the agreement would be finalized in the coming fortnight. On July 21, Iran signed an agreement with Iraq to deliver 25 mcm of gas per day to the Arab nation's Sadr, Baghdad and al-Mansouryah power plants. The deal is estimated to earn Iran $3.7 billion a year in revenues. 

Iran, which sits on the world's second largest natural gas reserves after Russia, has been trying to enhance its gas production by increasing foreign and domestic investment, especially in its South Pars Gas Field.