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Iran eyes new blue fuel markets in neighboring countries

20 January 2016 13:13 (UTC+04:00)
Iran eyes new blue fuel markets in neighboring countries

By Aynur Karimova

After the removal of economic sanctions on Iran, which were imposed due to the country's nuclear program, Tehran is seeking new markets for exporting its blue fuel.

Iran, the world's second largest natural gas holder, sees neighboring countries as its new markets for gas export.

CEO of the National Iranian Gas Export Company Alireza Kameli said Kuwait and the UAE are among main gas export destinations of Iran in the post-sanctions era.

"Also, Iran is going to export 65 million cubic meters of gas to Iraq per day, which will increase in the warm season," Mehr news agency quoted Kameli as saying on January 18.

Speaking about Iran's sixth cross-country pipeline, which will connect to two pipelines in Iraq (one to Baghdad, second to Basra) Kameli said Iran will be exporting 30 million cubic meters of gas to Baghdad province and 35 million to Basra province.

"Iraq has the facilities ready and the only major problem to inaugurate them is related to security issues," he added.

Touching upon the exports to Pakistan, the official said that despite this country's lack of commitment regarding the completion of the Peace Pipeline, 780 kilometers of which fall within the country’s soil, Iran is not going to sue the country, preferring friendly relations.

Iran and Pakistan signed a gas agreement, according to which Pakistan was set to import 22 million cubic meters per day of natural gas from Iran through the Peace Pipeline as of 2015. However, Pakistan has not yet managed to establish its section of the pipeline. The pipeline is to carry 21.5 million cubic meters of gas per day to Iran’s neighbor.

Commenting on Iran gas export to Turkey, Kameli said that until the current lawsuit filed by Turkey against Iran receives a court ruling, Tehran will not hold any negotiations with Ankara to boost the export.

Turkey has filed a lawsuit against Iran in International Arbitration Court, accusing its eastern neighbor on selling gas at high price and delivering low volume. Iran has obligation to export about 10 billion cubic meters a year of gas to Turkey.

Kameli further added that the Iran-Oman underwater gas pipeline will be completed in 1.5 years.

The agreement on this pipeline was signed two years ago. Iran will export 28 million cubic meters of natural gas per day to Oman - part of it will be consumed by the country, while the rest will be turned into LNG and exported on behalf of Iran.

Commenting on Iran-India talks, he said Iran will hold negotiations with Indian customers in near future.

"A 1,300-km pipeline is going to be stretched by Indian companies to carry the gas to the south-Asian country," Kameli noted.

Iran is producing about 700 million cubic meters of gas per day, while the country is planning to increase this volume to 1,300 million cubic meters of gas per day by 2020.

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

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