SHANA � National Iranian Gas Company (NIGC) says the Iraqi city of Basra will be ready to import natural gas cargoes from Iran before the end of the current Iranian calendar year to March 20 2018.

Hamidreza Araghi, managing director of NIGC, said Iran is prepared to start gas flow to Basra which has announced it would be ready to receive the gas within the next two months.

He said a gas terminal in Iran's Shalamcheh will pump the gas it receives from Shalamcheh-Ahwaz pipeline to Basra with a maximum capacity of 25 million cubic meters per day but because certain infrastructure for receiving the gas has not been prepared in the Iraqi city, gas flow has not started yet.

Basra needs to launch several passages beneath rivers which has delayed their gas imports from Iran so far, the official added.

The gas will be mostly used for power generation.

Iran and Iraq, both member of the Organization of the Petroleum Exporting Countries (OPEC), have signed a gas deal based on which Iran has agreed to export a minimum of 7 mcm/d of natural gas to the Iraqi cities of Baghdad and Basra through pipeline. The amount can increase to 35 mcm/d.

Iran started gas flow to Baghdad in June but no gas has yet reached Basra.