DUBAI: Iraq is studying Kuwait's request for natural gas but its domestic demand would come first.

"We are studying Kuwait's request but we will not be considering exports before we satisfy the domestic market," said Iraq Oil Minister Hussain Al Shahristani.

He said Iraq was looking to use the gas to supply power plants. A senior Kuwaiti oil ministry official was quoted this week as saying Iraq's southern neighbour will hold fresh talks with Baghdad on the request and that he did not rule out a year-end start for imports.

Kuwait signed an initial agreement in December 2004 to buy up to 200 million cubic feet of Iraqi gas per day in two stages to meet its rising power needs, but the deliveries have yet to begin.