Iran has begun construction on a US$10bn natural gas pipeline to Syria in an attempt by Tehran to boost energy exports affected by international sanctions
Fars News Agency (FNA) reported that the 1,500km project will pass through Iraq before reaching Syria. The first phase of construction involving a 225km stretch has begun at an estimated cost of US$3bn.
Oil ministers of Iran, Iraq and Syria had signed a preliminary agreement on the gas pipeline in July last year. As per the agreement, the pipeline will transit 110 mcm of natural gas a day to Damascus. Syria will purchase between 20 to 25 mcm a day of Iranian gas, while Iraq had also signed a deal with Tehran to purchase up to 25 mcm a day to feed its power stations.
The gas will be produced from the Iranian South Pars gas field in the Persian Gulf, which Iran shares with Qatar, and holds an estimated reserve of 16 tcm of recoverable gas.
The entire project has been slated for completion in the second half of 2013.
