Gas production in southern Iraq has reached 700 million cubic feet per day (MMcf/d), and is expected to reach 1 Bcf/d by the end of 2017, an Iraqi energy official said on Jan. 12.

Iraq's South Gas Co. had also begun pumping gas through a new 200 MMcf/d capacity pipeline, the official told Reuters.

"There will be noticeably large increases by the end of the current year," said Ahmed Saddam, head of production at South Gas.

Iraq has begun reducing oil production in January in line with an OPEC decision to cut output by 1.2 MMbbl/d to support prices, although oil exports from southern Iraq have reached record levels.

Iraq is the second-largest producer in OPEC.