Kuwait and Iraq reach agreement on gas project (15/12/04)

Kuwait and Iraq have reached an initial agreement on a KD238 million ($809 million) deal to supply Kuwait with 200 million cubic feet of gas per day.

The agreement will supply Kuwait with 200 million cubic feet of gas per day

"We have agreed on the gas project, which is expected to begin in October after infrastructure is rehabilitated and upgraded," Essa Al Oun, undersecretary at Kuwait's Energy Ministry said.

The project will be divided into two phases, the first of which will supply Kuwait with 35 million cubic feet daily of Iraqi gas beginning October, followed by another 165 million cubic feet daily within the next two to three years, Oun said.

The project is expected to be finalised within a week.

The two countries, who restored ties after the 2003 Iraq war which toppled Kuwait's former occupier Saddam Hussein, also agreed on a six-month supply strategy to export Kuwaiti petroleum and oil products to Iraq beginning January.

Source: TradeArabia