Iraq has signed a four-year agreement with Iran to import gas from the neighbouring country, it has been reported.
The move is in a bid to ease the country’s electricity shortages and feed two of its power plants in Baghdad. The capital city is expected to buy around 25 million cubic metres of Iranian natural gas per day as it doesn’t produce enough to feed its power stations.
The gas will be fed through a 227km long pipeline currently under construction but is expected to be completed within the next two months.
Reports claim the Iranian Government expects to earn $10 million (£6.5m) a day or $3.7 million (£2.4m) a year from the natural gas export agreement.
Earlier this year Iraq found an extra billion barrels worth of oil in the country.