Wednesday 28 December 2022

Moscow considering gas export to Pakistan through Iran

Russian Deputy Prime Minister Alexander Novak has said his country is considering export of natural gas to Pakistan and Afghanistan through Iran.

Novak said that in the long run, Russia can send its natural gas to the markets of Afghanistan and Pakistan, either using the infrastructure of Central Asia or by swapping from the territory of Iran.

Back in November, Iranian Oil Minister Javad Oji had announced a plan for cooperation with Russia and Pakistan on gas export to Islamabad.

Under the mentioned plan, Iran can tap Russian gas for a revival of its long-installed pipeline project to neighboring Pakistan.

As reported by Iranian media, Russia has agreed to supply gas to Iran for the purpose of delivery to Pakistan via the Iranian pipelines.

Russia has also agreed to build pipelines in Pakistan that were supposed to be built by the Pakistani side of a 1995 gas supply contract with Iran.

Russia’s contribution to the scheme comes as the country is trying to find new markets for natural gas supplies that were removed from the European markets because of Western sanctions on Moscow over the war in Ukraine.

Iran is also keen to partner with Russia in supplying gas to Pakistan as the country could benefit financially from the project while increased gas supplies from Russia will help the country address potential gas shortages in its northern regions.

Under a proposed swap scheme, Iran will import gas from Russia either through Turkmenistan or Azerbaijan to consume the supplies in its northern regions while committing to deliver the same amount of gas on the border with Pakistan.

Iran has another option to buy Russian gas for domestic consumption in its north without committing to any swap delivery of the same amount to other countries.

That will enable Iran to meet the growing domestic demand for natural gas and increase its gas supplies for the purpose of exports to other countries.

Experts believe both scenarios could benefit Iran although some prefer the swap model because it will lead to more Russian contribution to the Iran-Pakistan gas pipeline project.

 

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