Azerbaijani pipeline – only route for supplying Iranian gas to Europe
By Maksim Tsurkov
Long-awaited nuclear deal to put an end to over 10 years of talks
between Iran and P5+1 (the US, UK, France, Russia, China and
Germany) has finally been signed.
Signing of this agreement likely to pave way for lifting the
sanctions imposed on Iran which will significantly affect the world
energy map. This is while the export of Iranian energy resources,
in particular gas remains as one of the main issues in which
Azerbaijan can play a significant role.
Once the sanctions imposed on Iran by the West are lifted, Iran
will get the right to sell its gas on European markets. Certainly,
Iran has a great desire to do this. However, it is the moment when
the opportunities do not fully coincide with desire.
The problem is not related to the shortage of gas reserve (Iran has
more than enough gas reserve – over 34 trillion cubic meters, or
around 18 percent of world reserve), but lacks necessary
infrastructure.
Iran has no direct route for supplying its gas to Europe. The most
convenient and acceptable route for delivering this country’s gas
to Europe is through Turkey. However, currently, Turkey has no
transit pipelines, except for TANAP which is a part of the Southern
Gas Corridor.
Another advantage of this choice is that by the time when Iran
increases gas production and becomes ready to export it to European
markets, TANAP will be fully ready to expand its capacity from
initial 16 billion cubic meters to 31 billion cubic meters of gas
per year.
Iran would need money and a lot of time to construct its own
pipeline to Europe and create infrastructure. However, currently,
Tehran doesn’t have the needed amount of money and time for that.
In this situation, it is much easier for Iran to join the Southern
Gas Corridor rather than to create something from scratch.
Tehran will also need to resolve the investment issue, and those
related to the creation of infrastructure that will deliver Iranian
gas to Turkey. But apparently, Iran will join the Southern Gas
Corridor sooner or later.
Thus, the Azerbaijani project is today the only and main route
through which Iranian gas can be delivered to European market.
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