Azernews.Az

By Aynur Karimova

Greece, which is in preliminary talks with Iran to meet its local demand in natural gas and provide a gateway for the Islamic Republic to supply fuel to other European consumers, seeks to foster close energy partnership with the Persian Gulf country.

Ali Fathollah-Nejad, an expert of the German Council on Foreign Relations (DGAP), believes that this urgency occurs from the current tensions between Europe and Russia.

"Greece, along other crisis-ridden southern European countries, was one of the most affected by the EU's embargo of Iranian hydrocarbons," he told Azernews. "Now that these sanctions have been lifted, not only Greece but the EU as a whole seeks to foster a close energy partnership with energy-rich Iran, the urgency of which is boosted by the current tensions between energy-importing Europe and Russia."

Greece produces little oil and almost no gas, while Iran is a member of OPEC and holds huge natural gas reserves.

In this regard, the European country is hoping that the removal of sanctions against Iran will help it diversify its sources of energy and enhance the European country’s role as a regional energy-distribution hub.

Iran, in turn, wants to start selling its natural gas in liquefied form by using ships. In this regard, it is interested in energy cooperation with Greece.

Fathollah-Nejad believes that Iran eyes energy cooperation with Greece as it seeks to use the latter's refineries and eventually facilities for liquefying its gas, which would provide the basis for a sustainable energy partnership.

In this regard, Iranian companies' interest in participating with Depa, Greece’s state-run gas supplier, in a company that will build and run the planned floating LNG storage and re-gasification facility at Alexandroupolis, is understandable.

After the removal of Western sanctions on Iran, energy-consuming countries have showed interest in entering or re-entering the Iranian market.

The Hellenic Petroleum, the biggest oil refiner of Greece, has become the first European refiner to restart trade relations with Iran after the post-sanctions era.

The company, which was a major buyer of Iranian crude, agreed to purchase crude oil from the National Iranian Oil Company on January 22.

Bloomberg reports that Tehran and Athens agreed for Iran to supply crude to Hellenic Petroleum and purchase oil products from the refiner.

Greek Energy Minister Panos Skourletis believes that the deal, possibly Iran’s first such agreement with a European company since lifting of international sanctions, paves the way for cooperation in the gas market.

The Revythousa re-gasification terminal near Athens and a planned facility at Alexandroupolis in the north of the country are considered as potential entry points for Iranian gas.

Thus, Greece enjoys favorable conditions to pave the way for Iran to return to the European market and to become a conduit for re-entering this oil market.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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