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Iranian Gas Export Contract to Be Finalized Soon

Source: www.gulfoilandgas.com 6/19/2012, Location: Asia

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Negotiations are proceeding well with Iraqi and Syrian officials on gas transfer expecting an agreement to be finalized in near future, deputy managing director of the National Iranian Gas Company (NIGC), Mostafa Kashkouli, said.

Speaking to Shana, Kashkouli noted with regard to firm determination of the three countries to reach a final agreement, it is expected the last year’s MoU changes into a contract in near future.

Stating that supplying Iraqi power plants with gas is being included in past year’s Memorandum of understanding, the official noted that based on the agreement Islamic Republic of Iran will deliver 25 million cubic meters of gas per day to Iraq through a 48-inches gas pipeline as an offshoot of the six Iran’s gas trunk line.

Meanwhile NIGC’s managing director, Javad Oji, said the volume of Islamic Republic of Iran’s gas exports will reach 180 million cubic meters per day in next four years.

Addressing 25th World Gas Conference on 8th June in Malaysia, Oji said: Over the fifth five year development plan to 2015, 12 new phases of South Pars Gas Field will be coming online, of which four phases have allocated to LNG. He went on to say that Iran’s gas production capacity will reach 1.2 billion cubic meters of gas per day in 2016 of which 180 million cubic meters will be exported through gas pipelines and LNG carrier vessels.

Referring to gas plans of the country in next years, managing director of the National Iranian Gas Company (NIGC) said: Allocating gas produced in four phases of South Pars Gas Field to exports to Europe, through a gas pipeline from Assaluyeh south of Iran to Bazargan region, northwest of the country in border with Turkey, with transfer capacity of 110 million cubic meters per day, are among the other plans of the country in future.

‘The gas produced by another four phases of South Pars Gas Field will be allocated to exports to Pakistan and India while negotiations are underway for other possible routes which will turn Iran into a key player in the region as a source of supplying gas to customers.

Elsewhere in his remarks, NIGC’s managing director noted that Iran ranks the second in the region in view of the length of gas grid adding Islamic Republic of Iran with production capacity of 600 million cubic meters of gas per day and holding advanced infrastructures is capable to transfer 750 million cubic meters of gas per day.

Referring to Iran and Turkmenistan’s recent deals on raising the volume of gas imports from Turkmenistan to 14 billion cubic meters per year, the official said: Gas exports to Iraq, Syria and finally Europe is high on the petroleum ministry’s agenda. According to Oji construction of a 200 kilometers gas pipeline, with 48 inches diameter, is the first step in gas trade with the neighboring country, Iraq.

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