As Iran is discussing with the P5+1 over a final nuclear deal that would lead to the lifting of sanctions against the country, officials are already talking about scenarios for post-sanction economic activities. For a country that sits on huge reserves of natural gas, planning to diversify the range of clients for the crucial fuel appears to be already a priority.
Iran’s media reported on Saturday that National Iranian Gas Export Company (NIGEC) is currently engaged in talks with several Persian Gulf littoral states over the exports of natural gas.
“The top priority for Iran today is to export gas to Persian Gulf countries due to the short distance involved,” said Alireza Kameli, the managing director of NIGEC. “Iran can establish a pipeline of 200 kilometers and feed a large number of those countries,” he was quoted as saying by the Persian-language newspaper Jahan-e San’at.
Iran has the world’s second largest conventional gas reserves after Russian. The bulk of the country’s gas reserves are located in South Pars energy in Persian Gulf waters. The country produces over 600 million cubic meters (mcm/d) of gas from the existing projects in South Pars and officials have already emphasized that production will rise to above 700 mcm/d within the next three years.
“The solution for Iran over exports of natural gas to Persian Gulf countries is using seasonal export deals,” Kameli said.
“Iran’s gas consumption drops in the summer by at least 350 million cubic meters per day compared to the winter …This is while the need for imports of natural gas for the Persian Gulf countries becomes very intense in summers.”
NIGEC chief further emphasized that Iran is currently negotiating with the UAE, Kuwait and Oman over the exports of natural gas.
Iran’s next gas export priority, Kameli said, is Europe. Nevertheless, he did not mention India – that had been for long been a favorite destination to receive Iranian gas through Pakistan – in NIGEC’s post-sanctions export plans.
