Iran is looking to export natural gas to Kuwait, National Iranian Gas Company chief Hamidreza Araghi said on Sunday, as he confirmed plans to begin exports to neighbouring Iraq next month.

"There is capacity to export gas to Kuwait via Iraq, and this plan can become operational if a contract is signed," Araghi was quoted as saying by the oil ministry news agency Shana.

Kuwait's oil minister Ali Saleh al-Omair said in June last year that his country was looking to sign an agreement with Iran to secure much-needed natural gas supplies.

There are major obstacles to such an arrangement, however, including poor infrastructure, international sanctions on Iran over its disputed nuclear programme, and diplomatic issues, since Kuwait is a close ally of the United States and Saudi Arabia. Araghi did not say how these obstacles might be overcome.

He added that Iran would start exporting gas to Iraq by the middle of May, echoing comments by another senior official last month.

Exports to Iraq would start at 5 to 7 million cubic metres a day (mcm/d), eventually rising to 25 mcm/d.-Reuters