Iran plans to expand gas pipeline network
By Fatma Babayeva
Iran needs $15 billion in investment for the construction of a network of gas pipelines.
Iran will build network of pipelines with a total length of five thousand kilometers in its territory during the next five years, said planning director of the national Iranian gas company Hassan Torbati Montazeri to SHANA news agency.
Both foreign and domestic investments may be involved to the construction of new gas pipelines, Planning Director added.
Earlier, the Petroleum Ministry of Iran said that $55.8 billion investment is required to implement gas transit pipeline projects by 2025. Furthermore, $27 billion investment is needed for the construction of gas distribution networks in Iran.
Iran set a goal to export its natural gas to the EU in near future. However, the country lacks necessary export infrastructure to realize gas sales. There is no transit gas pipeline connecting Iran with the EU.
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 new one.
Another option for Iran is to export its gas in LNG form. The NIOC said earlier that, Iran is aiming to build LNG facilities within two years, but this time frame seems unlikely.
Iran also considers building 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 FLNG with a domestic company.
Despite some of the sanctions related to the nuclear policy of Iran has been lifted, some of them still remain in place. Iran’s purchase of U.S. technologies is prohibited.
At the present, Iran’s estimated gas reserves amount to 33 trillion cubic meters.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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