Gas swap agreement is mutually beneficial for Azerbaijan, Iran and Turkmenistan - experts

(MENAFN- Trend News Agency)

BAKU, Azerbaijan, Nov. 30

By Nazrin Israfilova – Trend:

The gas swap agreement is of great importance since it is necessary to cooperate on the energy track, first, with neighboring countries, Professor of the Azerbaijan State Economic University (UNEC) Elshad Mammadov told Trend .

On November 28, in Ashgabat, Azerbaijan, Iran, and Turkmenistan signed a contract on gas supplies swap. According to the document, Turkmen gas will be supplied to Azerbaijan through Iran in the amount of up to 1.5-2 billion cubic meters per year. Swap supplies of Turkmen gas to Azerbaijan through Iran will begin on December 22 this year. The trilateral agreement will provide gas to five provinces of Iran.

'We already have such agreements with Russia. In terms of energy supplies, countries should primarily cooperate with their neighbors, taking into account the uneven distribution of energy resources. Even in energy-rich states, resources are concentrated unevenly. Iran has huge gas reserves, but at the same time, there is traditionally an energy deficit in the northern regions bordering Azerbaijan. And in this regard, supplies from Azerbaijan have very great prospects. I believe that the regions of Iran bordering with Azerbaijan are more profitable to receive gas from Azerbaijan than from the southern regions of Iran,' Mammadov said.

According to Mammadov, at the same time, it is more profitable to supply gas to Nakhchivan from Iran than from Baku. That is, it is extremely important to ensure the continuity of energy supplies for the domestic industry, for domestic consumers.

Mammadov believes that this is also a significant decision for Turkmenistan.

'Agreements on spot deliveries are mutually beneficial for one side as well as for the other. There are cases when Turkmenistan cannot find buyers for its huge gas resources due to the corresponding logistical problems. And in this aspect, bearing in mind that the volume of gas consumption in Azerbaijan is sharply increasing, we can supply the domestic market with Turkmen gas,' he added.

Also, according to Senior Fellow at the Policy Center for the New South (PCNS, Rabat) and at the French Institute for International and Strategic Affairs (IRIS, Paris) Francis Perrin, the deal shows that the three countries are seriously trying to develop their economic and energy cooperation.

'Turkmenistan possesses huge gas reserves. According to the bp statistical survey of world energy, the proven gas reserves of Turkmenistan rank fourth in the world after Russia, Iran, and Qatar. This country is, of course, trying to increase its gas exports, and the recent agreement with Iran and Azerbaijan is a new step in this direction. Gas volumes can reach two billion cubic meters per year or slightly more (5-6 million cubic meters per day),' the expert said.

Perrin also noted that Iran has huge gas potential, but the country often faces gas shortages in its northern provinces in winter.

'It is also an opportunity for Iran to develop its economic and energy relations with its neighbors and enhance the country's role as a potential energy hub through its geographic location and energy infrastructure. Azerbaijan will receive 5-6 million cubic meters of natural gas per day, and this agreement will help improve bilateral relations with Iran,' Perrin said.

In addition, he noted that Iran has also taken some steps to resolve the dispute over gas payments with Turkmenistan.

'There is great potential for cooperation between Turkmenistan, Iran, and Azerbaijan, as well as some other countries in this part of the world,' Perrin added.

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