Mubasher: The Kuwaiti oil ministry said on Saturday it had reached an agreement on the pricing of the exported gas unit from the Iraqi southern fields, Iraq Economic Center cited the Kuwaiti newspaper Al Rai.
“The Kuwaiti side agreed with the Iraqi officials on the pricing of the gas unit,” said the Kuwaiti Oil, Electricity and Water Minister Essam al-Marzouq, as per the Kuwaiti paper.
“What has been said about the unit price is incorrect,” the minister noted, adding that the Kuwaiti government is waiting for Iraqi officials to review the terms of the agreement in preparation for announcing the date of signing, which will be announced with the unit pricing agreed upon as soon as Iraqi officials approve to the agreement.
Iraq announced on Thursday that it has hired Japan’s Toyo Engineering to help build a gas pipeline to Kuwait and a related petrochemical plant.
The imports will help Iraq to reduce flaring and finish paying reparations owed for its 1990 invasion of Kuwait.
The project will allow Kuwait to diversify its gas imports.
Toyo is proposing to construct a gas pipeline and start deliveries after 2019, Reuters recently reported citing industry sources.
Kuwait is very keen on the project and has offered a sovereign guarantee for up to 80% of the costs, which its total amount has not been announced yet.
