Iran's revenue from gas exports reduces - EU advisor

Business Materials 27 June 2012 16:24 (UTC +04:00)

Azerbaijan, Baku, June 27 /Trend S.Isayev, T. Jafarov/

Iran's revenue from gas exports is going down, EU economic advisor Mehrdad Emadi told Trend, commenting on the gas swaps between Iran and its neighbors.

Iran's geographic location makes it an ideal gateway for transporting and swapping various energy carriers in the Middle East and Central Asia.

The first sea shipment of liquid gas from a Caspian Sea littoral state has been offloaded by Iran as part of its program for swapping petroleum products.

"Iran usually produces gas on North-East, while the swap itself occures on North-West," Emadi said. "This means that Iran does swapping with either Turkey or Cyprus".

Emadi added that right now both Turkey and Cyprus have problems with gas swapping.

"Turkey recently said that due to problems with sanctions imposed on Iran, it will no longer do swapping. Therefore Iran's income from gas has reduced," Emadi explained.

Iran has a contract with Turkey to export 10 billion cubic meters of natural gas to the latter.

Last year TAP (Trans Adriatic Pipeline) officials stated that the pipeline will not transport any Iranian gas under the current political circumstances.

According to the statement, TAP pipeline is designed to cater for the volumes of gas from the second stage of Azerbaijani Shah Deniz gas field development that will be exported beyond Turkey into Europe.

TAP shareholders consider Caspian gas to be the initial source of supply to fill TAP's initial capacity of 10 bcm per year. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets.