Saturday 30 July 2022

Iran aspires to become a gas hub with Russian support

Iran is currently under sanctions and involved in nuclear deal discussions with the United States and the West. It is also positioning itself to work with China and Russia.

The investment by Gazprom in Iran’s National Iranian Oil Company was announced during a recent visit by Russian President Vladimir Putin to Iran. This creates hope that Russian investment could help Iran become a regional gas hub.

Analyst and energy expert Habibollah Zafarian was quoted in an article at Iran’s Fars News arguing that the country could become a gas hub based on gas trade with neighboring countries. “Iran's gas reserves and privileged geographical location allow the country to play an influential role in the gas trade of the region.” 

Zafarian said “Iran's strategy should be defined in such a way that it buys the surplus gas of the countries of the region as much as possible and exports gas to the requesting countries at a higher price.”

Those like Zafarian, quoted in Iran pro-government media, are part of a push for the Islamic Republic to get out from under the West’s shadow and increase energy independence. 

Iran is well positioned to trade with Qatar, Azerbaijan and Turkmenistan, which have a surplus of gas, the article said, adding that gas is currently being exported by various countries to Armenia, Turkey, Iraq, Kuwait and the Persian Gulf countries – especially the UAE – and Oman, Pakistan and Afghanistan. 

“Everyone wants to import gas,” Zafarian said. “As a result, there is a great opportunity for Iran to become a regional gas hub with gas trade between exporting and importing countries.” 

Iran wants to take advantage of the war in Ukraine and the global economic crisis to work closely with Qatar and also improve its gas fields and its liquefied natural gas (LNG) infrastructure

“Also, in the recent developments of the gas market, Russia has minimized gas exports to Europe, and America is trying to increase its LNG exports in order to replace a part of Russian gas in the European market,” an expert told Fars News.

Iran can now purchase Russian gas and then export it. There could even be an export pipeline. Gas could be exported to Turkey, Armenia, Georgia and Syria.

"In return, we can also help Russia and buy Qatar gas, which is one of the most serious options to replace Russian gas in the European market, and sell it to our destination markets."  

Clearly Iran is plotting to take advantage of the global crises, openly saying what it wants to do. The regime has been trying to develop north-south rail and transport lines for years so that it can hook up Turkey with southern Iran and also develop links to Central Asia and Pakistan or even India.  

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