Iran may rent pipelines to export gas to EU
By Gunay Hasanova
Iran may rent regional gas pipelines instead of building new routes to export gas to the EU.
Head of the National Iranian Gas Company Alireza Kameli said that one of the possible ways of delivering the gas to the EU is the construction of gas liquefaction plants (LNG) in Iran, but Iran may also consider the option of gas export by pipeline, Mehr news agency reported.
Tehran was released of the most part of sanctions imposed by the U.S. and its allies over the long-debated Iranian nuclear program on January 16, 2016. The historical deal was signed after the IAEA presented a report which confirmed the willingness of the Iranian authorities to implement the program regarding the significant cut of nuclear potential created in the result of long negotiations.
Later, the European Union and the United States confirmed the removal of the economic and financial sanctions on Iran related to its nuclear program.
BP reports that in the beginning of 2015 Iran's gas reserves were 34 trillion cubic meters, while Iran's share in the global gas market is 17 percent.
There is no transit gas pipeline connecting Iran with the EU.
That’s why Iran may build a gas pipeline through Turkey. Even, some experts previously suggested that Iran may use Southern Gas Corridor and build a connection pipeline to TANAP instead of building a new one.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of Stage 2 of the development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also join this project at a later stage.
As part of Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline (TANAP) and TAP.
Iran also considers building a gas pipeline to Oman where it can use already existing LNG facilities. Moreover, the country sees Kuwait and UAE as potential buyers of its natural gas supplies.
During last months, Iranian officials stressed several times that they are negotiating with international companies about both renting and building the floating liquefied natural gas vessels. The country signed an agreement on building LNG with a domestic company.
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