Iraq has signed an agreement with Iran to import natural gas to fuel two of its power plants.
Iraq's electricity ministry and Iran's oil ministry signed a five-year agreement under which Iraq will buy 25 million cubic metres of natural gas a day.
The deal is yet to be approved by the Iraqi cabinet and parliament.
The two neighbouring nations will install a gas pipeline that will pass through Iraq's Mansuriyah gas field near the Iranian border in Diyala province.
The gas imported through the pipeline will be used to fuel two 2.5GW power stations in Baghdad's northern suburbs Sadr City and Al Quds and will also be fed into the grid to supply other power plants.
Construction of the pipeline is expected to take 18 months to complete, reports the Wall Street Journal.