Iraq has floated a $1.5 billion tender to build a second pipeline to carry natural gas to Iraq, a report said.

The project will be a build-operate-transfer (BOT) one and all costs will be recovered through revenues from gas exports to Iraq, Ali-Reza Gharibi managing-director of Iran Gas Engineering and Development Company (IGEDC) was quoted in the Iraq Daily Journal, which cited state-owned Shana.

The project involves laying out pipeline from the Iranian city of Dezful to the border city of Shalamcheh and is estimated to take three years, the report said.