MESOP NEWS : PARTNER PUTIN ? – Russia’s Rosneft & KRG Reach Gas Pipeline Deal

SOUTH KURDISTAN (IRAQ) – Basnews English – 18/09/2017 – ERBIL — Russian state-owned oil company Rosneft signed a deal with Kurdistan Regional Government (KRG) to invest in gas pipelines in the region.

Rosneft is expanding its investments to gas by agreeing to fund a natural gas pipeline in Kurdistan, Rosneft and KRG said on Monday, according to Reuters.“Two sources close to the deal said the investments would amount to more than $1 billion,” according to the source.

Despite depending on oil pre-finance deals to overcome its financial crisis, KRG has still struggled to develop its large gas reserves which require more investment. This gas pipeline deal will speed up KRG’s gas development. “The pipeline’s capacity is expected to handle up to 30 billion cubic metres (bcm) of gas exports a year, in addition to supplying domestic users,” Reuters reported.The pipeline will be constructed in 2019 for domestic use in Kurdistan Region, but exports will begin in 2020. Rosneft has previously loaned money to KRG guaranteed by future oil sales and has also agreed to help the region expand its pipeline infrastructure.