Iran currently has two gas export contracts with Iraq’s Baghdad and Basra power plants, the oil minister said, adding that: “Based on the agreement of both parties, the two contracts will be extended for the next five years after going through expert procedures,” Shana reported.
Owji made the remarks after meeting with Iraqi Energy Minister Ziad Ali Fazel.
The two energy-rich neighbors also signed a major petroleum cooperation agreement amid expanding ties.
A joint working group will pursue the implementation of the agreement during regular meetings in the future.
Iran is a major supplier of natural gas to Iraq as the Arab country, which is the third largest crude oil exporter in the world, still struggles with rising demands for natural gas in its power plants.
Recent reports have suggested there has been an increase in the supply of natural gas from Iran to Iraq.
Iranian authorities say Iraq has settled a part of the huge debts it owed to Iran for previous gas supplies.