UPDATE 2-Shell seeks Iraq gas deal, decision soon-minister

(Adds Shell CEO declining to confirm)

By Jeremy Smith

BRUSSELS, Jan 31 (Reuters) - Royal Dutch Shell (RDSa.L: Quote, Profile, Research) has submitted a plan to develop natural gas resources in Iraq and the government will respond soon, the country's oil minister Hussain al-Shahristani said on Thursday.

"Shell has made a proposal to Iraq for gathering gas and building a facility to supply the local market and export additional gas ... through southern ports or a pipeline," he told reporters during a visit to Brussels.

"That proposal is under consideration and we will be responding very shortly."

Al-Shahristani said Baghdad was prioritising development of southern Iraq's gas and the region could provide "a significant amount" to Europe.

He was speaking after meeting European Energy Commissioner Andris Piebalgs to discuss enhancing energy cooperation between Iraq and the European Union which is seeking to diversify its energy supplies.

Shell's chief executive Jeroen van der Veer declined to confirm the Anglo-Dutch oil major's involvement when asked about the project in a conference call with reporters.

But the CEO said Shell had made "various proposals".