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Iran plans to increase gas production to one billion cubic meters per day: interview with top manager of NIGC

Oil&Gas Materials 17 September 2009 11:54 (UTC +04:00)
Trend News Persian desk's interview with the Director of Dispatch Center of the National Iranian Gas Company (NIGC), Hassan Muntazar Turbat, who attended international conference Infrastructure World Caspian-2009 in Baku.
Iran plans to increase gas production to one billion cubic meters per day: interview with top manager of NIGC

Azerbaijan, Baku, September 16 / Trend , T.Jafarov /

Trend Persian desk's interview with the Director of Dispatch Center of the National Iranian Gas Company (NIGC), Hassan Muntazar Turbat, who attended international conference Infrastructure World Caspian-2009 in Baku.  

Q: How do you assess the energy cooperation between Azerbaijan and Iran?

A: We have an agreement with Azerbaijan on swap gas supplies - we get gas from Azerbaijan and return the same volume on the border with the Nakhichevan Autonomous Republic. We want to increase gas operations in Azerbaijan, depending on the possibilities of the two countries and the capacity of the existing pipelines. Currently discussions are held in this direction.
As a participant of project to develop Azerbaijani Shah-Deniz, we plan to start importing gas from this structure at the second stage of its development.

Q: What are Iran's plans to join Nabucco gas pipeline project?

A: We believe that the Nabucco pipeline is one of the acceptable options for the transportation of Iranian gas to Europe, but we do not limit ourselves only with this pipeline. We also have other options, including DAF contracts with European companies to supply gas to the border between Iran and Turkey. Thus, during the transportation of Iranian gas, most of problems with the transit will be resolved by the European companies. We will only give the gas on the border with Turkey.

Q: Iran reached an agreement with Turkmenistan to buy 14 billion cubic meters of gas per year and to build a new pipeline. What further events do you predict?

A: We signed a contract with the Turkmengaz State Concern to purchase 14 billion cubic meters of gas per year. Formerly, we bought Turkmen gas from the Chalayg region. Under the contract, starting from this year, in addition to Chalayg, we intend to import gas from the Dovlatabad region. For this purpose, Turkmenistan should lay a pipeline with a length of 30 kilometers from Dovlatabad to the border region of Iran Sarakhs. In its turn, Iran will build a pipeline connecting Sarakhs with the system of internal pipelines.

Construction of the pipeline will create conditions for purchase of Turkmen gas, and for its transit.

Q: There are reports that India refused to participate in the Peace Pipeline...

A: At the initial stage, the Peace Pipeline was to be built with the participation of Pakistan and India. India's participation in the project is profitable for us and for India as well, but Delhi's refusal does not mean that the Peace Pipeline is an inefficient project. Iran has great potential to transport its own gas to various regions of the world, and we do not lose much, not selling gas to India. In addition, we believe that India will join the project.

Q: Taking into account the growing consumption of gas on the domestic market of Iran, will the country have gas for exports?

A: Indeed, in recent years, the gas consumption has increased in Iran. But it needs to keep in mind two things: firstly, in these years, gasification was actively conducted in Iran. Henceforth, 98 percent of Iran's cities use natural gas, and secondly, until now the price of gas in Iran was low, affecting its inefficient consumption. Now, the state implements a number of programs, including the stabilization of gas consumption.

Currently Iran ranks the second in the world for proven gas reserves. According to the plans of the State, over the next 15 years, Iran will become the third country in the world for gas production. Therefore, we plan to provide gas demand in Europe, Pakistan and India. Based on the long-term programs, we intend to increase daily gas production to one billion cubic meters.

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