Gazprom seeks to enter Iran’s export-oriented projects
By Aynur Karimova
Russian energy giant Gazprom does not rule out its participation in the implementation of a number of export-oriented projects in Iran, RIA Novosti quoted Alexander Medvedev, the Deputy Chairman of Gazprom, as saying.
Gazprom and the National Iranian Gas Company held talks in December on expanding Iran’s underground gas storage and its gas transport network, as well as equipment deliveries from Russia.
"With regard to Iran’s export opportunities, they, of course, exist both in pipeline gas and liquefied natural gas. However, what the purpose of this gas will be, it is still an open question. In addition, we do not exclude our participation in a number of projects in Iran, with export orientation," Medvedev said on February 1.
He made this remark during an Investor Day in New York, commenting on the removal of western sanctions on Iran and its consequences for cooperation with Gazprom.
"Iran's priority in the gas sector will be meeting domestic demand, especially in its territorial aspect," he noted. "It is no secret that there is a significant shortage of gas in the northern regions of Iran. It is no coincidence that the use of Russian output to meet Iran’s demand for gas has been discussed quite specifically in the course of our recent meetings with Iranian colleagues."
Iran possesses the world’s largest proven natural gas reserves, at 34 trillion cubic meters, or 18 percent of the world’s total proven reserves.
The energy-rich Iran has long been eyeing the lifting of sanctions and returning of foreign companies to the country. The foreign companies, such as BP, Total, Lukoil, Gazprom and many other companies are keen to return to the Iranian market.
Iran has recently unveiled new oil and gas contracts called IPC (Iran Petroleum Contract), which offers exploration, development, and production at oil and gas fields in an integrated package.
The IPC – that was unveiled to investors in Tehran in November 2015 – has replaced buyback deals which required the host government to pay the contractor an agreed price for all volumes of hydrocarbons it produced.
In January 2016, Gazprom expressed interest in exploring the possibilities of closer cooperation with Iran after the international sanctions against the country were lifted. Russia’s gas giant believes that Iran’s new format of oil sector contracts has provided a new vision of the country’s energy investment prospects.
Gazprom intends to share its experience in various fields of the gas industry with National Iranian Gas Company.
The NIGC and Gazprom can cooperate and exchange experience in various fields including construction of gas pipelines, gas storage, gas compressor stations and CNG as well as the construction of gas refineries.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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