Iran’s Gas Industry Eyes post-Sanctions Growth -- Update
Iran’s gas industry believes it has good prospects of prospering this year – its 50th anniversary -- with the lifting of sanctions. The managing director of the National Iranian Gas Company, Hamid-Reza Araqi told news agency Shana: “Over the past years, we have seen the expansion of the national gas supply network. It is hoped that with lifting of sanctions the gas industry will flourish even more than in the past.”
Collaborating with other countries will play a part in that, he said.
Today, 90% of the country’s population -- 22.585mn households -- are on mains gas, he said, adding that the figure will rise significantly by March 2018.
“As well as developing infrastructure to increase residential and industrial users which will help the environment and cut fuel use, we are planning to increase exports, so that the deal for exporting gas to Iraq is being finalized,” he said.
“In the post-sanctions era, Iran will be able to attract over $40bn in build-own-operate and build-operate-transfer methods. By establishing logical and wise relations with neighbouring countries, we can easily export gas to these countries,” he explained.
Technology transfer is the top priority in negotiating with foreign companies in the post-sanctions era, he stressed.
The director of the dispatching center at the National Iranian Gas Company, Manoochehr Taheri, said November 7 that the country produced some 202bn m3 in the fiscal year to March 20. He added that gas demand stood at 190 bn m3 last year.
According to the international affairs director at the National Iranian Gas Company, Azizollah Ramezani, Iran produces about 600mn m³/d of sweet gas, which may rise during winter. Iran plans to boost its gas output to 1bn m³/d in the next 2 years.
Over the weekend, the US president Barack Obama said the Iranian nuclear programme now satisfied the demands of the United Nations nuclear watchdog, the International Atomic Energy Agency, paving the way for the removal of most of the trade and investment sanctions imposed on Iran.
Export plans take shape
The managing director of National Iranian Gas Exports Company, Alireza Kameli, has elaborated on the latest developments in negotiations with different countries aimed to export gas to those countries.
These include Oman, Iraq, Turkey, Armenia, and Pakistan. He also identified some Persian Gulf states, including Kuwait and the United Arab Emirates, as potential new markets, Mehr news agency reported on January 18.
Iraq
Kameli says Iran will export 65mn m³/d to Baghdad and Basra and possibly more in summer. The establishment of pipelines and facilities is virtually complete but security lapses in some parts of Iraq mean that the gas export plan has not been yet finalized.
Pakistan & India
Iran has completed its section of the pipeline to export gas to Pakistan. But, Pakistan has not taken any measures to build the 780-km section on its territory owing to sanctions on Iran. Pakistan is seeking a partner to build the pipeline, with Chinese firms likely to be chosen. Iran is projected to export 21.5mn m³/d to Pakistan. Iran has held talks with India to build a 1300-km subsea pipeline which will be funded by India.
Turkey
Iran is contracted to export 10bn m³/yr to Turkey but the buyer has filed two complaints against Iran. Iran has won the first case. Iran will not negotiate to boost exports to Turkey until the result of the second case has been announced.
Oman
Iran and Oman signed an agreement in March 2014, whereby Iran will export 28mn m³/d by a subsea pipeline, which is expected to be built over one and a half years. The gas will be used partly in the domestic market and the rest as input for LNG plants, to compensate for dwindling production. There is also the possibility to export gas via Oman to other countries.
Armenia
Iran is exporting about 1mn m³/d to Armenia in exchange for electricity. Iran can increase the volume of export to 5mn m³/d if Armenia lays the pipelines necessary. Armenia has announced that it will build a 400-kV power transmission line to Iran over the next two years.