Iran imports 300M cubic meters of Russian gas per day under new deal
Date
7/18/2024 7:29:54 AM
(MENAFN) Iranian Oil Minister Javad Owji announced on Wednesday that Iran is set to receive 300 million cubic meters of Russian natural gas per day, according to reports. This development follows a memorandum of understanding signed in June between Russian energy giant gazprom and the National Iranian Gas Company, paving the way for gas supply via a pipeline crossing the Caspian Sea.
Owji noted that Iran currently produces between 840 and 850 million cubic meters of Natural gas daily. Under the terms of the agreement, the additional 300 million cubic meters of gas will be transported from Russia to Iran, with Russia financing the infrastructure required for this cross-border project. The agreement spans thirty years and includes provisions for exporting surplus Russian gas, not used domestically in Iran, to other international markets. The estimated annual value of the contract is projected to range between USD10 billion and USD12 billion.
Iran holds the world's second-largest natural gas reserves after Russia, making it a key player in the global energy market. For Moscow, this agreement marks a strategic move to expand its footprint in Iran's natural gas sector, particularly as U.S. sanctions have restricted Tehran's access to advanced technologies and hindered its gas export capabilities.
The timing of this partnership coincides with challenges faced by Gazprom due to geopolitical tensions and reduced gas exports to Europe following the conflict in Ukraine. These factors have significantly impacted Gazprom's revenues, with the company reporting its first annual loss in over two decades last year, amounting to USD7 billion. Despite these challenges, the new agreement underscores Russia's continued efforts to strengthen its energy ties with Iran, aiming to bolster its presence in the global natural gas market amid evolving geopolitical dynamics.
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