Russian oil company Rosneft is planning to build natural gas pipeline infrastructure in Iraqi Kurdistan in an attempt to export to European markets, including Turkey.
The company is currently holding talks with the Kurdistan Regional Government of Iraq in connection with the construction of the pipeline, for which a separate agreement is expected to be reached by the end of the year.
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The pipeline is to be constructed under a build, own, operate, transfer (BOOT) arrangement and expected to serve domestic energy needs, as well as have an export handling capacity of up to 30 billion cubic metres of gas.
The company, which will recover the investment in the gas pipeline through tariff charges and an agreed rate of return basis, noted that the partnership is set to enhance cooperation with the regional government and enable it to expand its presence in the area.
In addition, Rosneft has completed its due diligence process on oil pipeline export infrastructure in the region.
In June this year, an investment agreement was signed by the company with the Kurdistan Government at St. Petersburg International Economic Forum to engage in exploration and production, as well as monetisation of the export oil pipeline project.
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By GlobalDataThe company expects to finalise the legally binding documents on the oil pipeline project in the near future.
It plans to undertake commissioning of the gas pipeline and first domestic supplies in 2019, with export supplies slated for 2020.
The gas pipeline project is set to elevate the company’s position in building and expanding Kurdistan Region’s gas transport infrastructure, as well as creating synergy with its existing projects, including five oil and gas fields in the region.
