Rosneft in talks with Iraq’s Kurdistan on gas pipeline deal

Russia’s state-owned oil major Rosneft is planning to invest in gas pipeline project in Iraq’s Kurdistan, as the company looks to expand its reach in the region, Rosneft said in a statement on Monday.

An agreement is expected to be finalized by the end of this year.

“Rosneft and Kurdistan Regional Government are negotiating implementation of the project for construction of gas pipeline system on a fast track basis,” the statement said.

“Commissioning of the pipeline and first domestic supplies are planned for 2019 and export supplies – 2020,” it added.

The statement did not provide the value of the investments. A Reuters report, which cited two unnamed sources close to the deal, said the investments would amount to more than $1 billion.

The Kurdistan Region gas pipeline will supply natural gas to the power plants and domestic factories in the region, along with enabling export to Turkey and European market in the future, Rosneft said.

The pipeline capacity is expected to handle up to 30 billion cubic meters a year for gas export, in addition to supply for domestic use.

The discussion comes ahead of Kurdistan’s independence vote, scheduled for Sept 25.