Shana: Iran’s Share in World Gas Market: Uncertainties and Doubts

Investment on LNG is the only chance for those countries with large gas reserves but far from consumption markets.

Over the recent years LNG trade has grown hugely overtaking even gas market growth.

In his address at Energy Security Summit 2015 which was entitled as "Crises and Prices: Energy Security Amidst Multiple Uncertainties", Iranian Minister of Petroleum Bijan Namdar Zanganeh said that the way of natural gas pricing does not justify construction of infrastructures for gas exports to Europe via pipeline

He said the Islamic Republic of Iran prefers to export its gas to Europe in the form of LNG. 

He added: "We do not ignore building oil pipeline for carrying gas to Europe but it is not our priority."

Gas prices vary in different markets including the U.S, Europe and Asian markets. In the U.S, natural gas prices are very low due to deregulation, competition and abundance of natural gas and shale gas but in Asia, long-term contracts and oil linked prices of gas renders high prices while in European market gas prices are something between the U.S and Asian Market prices.

Based on BP’s 2014 report, Iran sits atop the largest gas reserves in the world which stands at 33.8 tcm or 18.2 percent of proven gas reserves of the world while Russia and Qatar rank second and third with 31.3 and 27.4 tcm respectively.

In 2013, the volume of gas trade rose by 15.1 bcm reaching 1,035.9 bcm of which 325.3 bcm was transported in the form of LNG and 710.6 bcm via pipeline. MORE