Iranian gas can reach Europe through connection of Islami pipeline to Nabucco

Azerbaijan, Baku, July 27 / Trend A.Badalova /

Iran's gas could be delivered to the European markets by connecting the planned "Islami pipeline" to the Nabucco pipeline, Editor-in-chief at Eurasia Energy Observer Andrej Tibold said.

The Nabucco project is actually based on older plans for the construction of a gas pipeline that would bring gas from Iran to Europe, Tibold told Trend via e-mail. Because of political constraints related to Iran, the 'updated' Nabucco project was forced to focus on the Caspian region for its gas supplies instead.

"If such an Iran-Iraq-Syria pipeline would materialise, it could in theory easily reach the European market via Nabucco, provided of course that Nabucco is built. Therefore both pipelines are not necessarily to be considered as competitors," he said.

The oil ministers of Iran, Iraq, and Syria signed an agreement in the Iranian city Asalue on Monday to build a 5,000 kilometer-long gas pipeline supplying Iranian natural gas to Europe.

The project will cost $10 billion. The gas pipeline will stretch from the Iranian gas-bearing region Asalue in the Khuzestan province, to the Iran-Iraq border, and further to Syria, Lebanon, and across the Mediterranean Sea into Europe.

Its capacity will be 110 million cubic meters of gas per day. The agreement for gas transit to Europe, Iraq, and Syria will be completed by late 2011. The project will be implemented within five years.

Nabucco gas pipeline project involves the gas supply from the Caspian region and Middle East to the EU. Participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE companies. Each of participants has equal share to the amount of 16.67 percent. Construction of gas pipeline is planned to be launched in 2013, the first supplies - in 2017. Maximal capacity of the pipeline will hit 31 billion cubic meters per year.

Tibold believes this Islami pipeline project mainly promoted by Iran is a way for Iran to show that it's still prepared to start exporting gas to Europe. But Iran is surely aware that under the current conditions Europe is not ready to take any Iranian gas.

Given the U.S. sanctions, Iran will face difficulties to develop the South Pars field , since it will need the assistance of foreign companies and their technology, mainly Western, Tibold said.
"So this raises the question whether Iran would actually be able to supply the needed volumes to this pipeline. Moreover, Iran currently imports gas from Turkmenistan to cover its domestic demand," he added.

Whether Iranian gas will eventually reach Europe by pipeline will very much depend on the political climate in Iran. He said.

Tibold noted that Iran could ultimately decide to develop the South Pars field for the quickly developing global LNG market. For this it would need the support from foreign partners. Since Western companies cannot do business in Iran, Chinese companies, who are quickly catching up with LNG technology, could possibly be among them, he said.

Weekly actual topics in Azerbaijan (April 16-20)
Weekly actual topics in Azerbaijan (April 16-20)
Weekly tenders in the region (April 16-20)
Weekly tenders in the region (April 16-20)
Last week’s laws, orders and decrees in Azerbaijan (April 16-20)
Last week’s laws, orders and decrees in Azerbaijan (April 16-20)
Loading Bars
Latest
Earthquake jolts Indonesia's Bali, no tsunami alert issued
Azerbaijani president attends ceremony to launch newly renovated “Aghjabadi-2” power substation (PHOTO/VIDEO)
Azerbaijani president inaugurates grain processing plant in Aghjabadi (PHOTO/VIDEO)
Kazakhstan increases import of chemicals from Turkey
Azerbaijani president arrives in Aghjabadi district for visit (PHOTO/VIDEO)
Spain reports first new COVID-19 death since Sunday
Azerbaijani Cabinet of Ministers: Borders remain closed due to current situation
EIB funds construction project in Georgia
TABIB: If people abide by quarantine regime rules, restrictions not to be further introduced in Azerbaijan
Georgia prepares for peach and nectarine harvesting season
Azerbaijani PM to reveal details related to restrictions
Volume of deposits in national currency greatly increases in Azerbaijan
Activity of Facebook users in Azerbaijan keeps growing
Operational Headquarters: Going outside may be banned in some Azerbaijani cities
TABIB: Shopping malls planned to be fully closed on weekend in Azerbaijan
Azerbaijan names economy sector with biggest share of credit investments
Kazakhstan to up its gross agricultural output before year-end
Azerbaijani Cabinet of Ministers:Tightening quarantine regime rules under discussion
Ministry of transport eyes transferring airports of Uzbekistan to foreign investors
Timeframe for orbiting Turkish satellites Turksat 5A, Turksat 6A announced
Azerbaijan discloses data on collection of premiums in insurance market in April 2020
Bank of Georgia launches campaign to support farmers
Iran aims to boost export of mineral products
Azerbaijan confirms 325 new COVID-19 cases
Azerbaijani Azexport portal notes growing export orders after softening quarantine regime
Azerbaijan State Tax Service talks concessions made to taxpayers
Azexport portal talks availability of Facebook Shop in Azerbaijan
Azerbaijani president attends ceremony to launch drinking water supply and sewerage systems in Aghjabadi (PHOTO/VIDEO)
Azerbaijani president inaugurates “ASAN xidmet” center in Aghjabadi (PHOTO/VIDEO)
Azerbaijani president attends ceremony to start grain harvest in Aghjabadi (PHOTO/VIDEO)
Export of carpets from Turkey abroad drops two-fold in May 2020
Association of Uzbek textile manufacturers talks about progress of industry
Travel by railway remains suspended in Georgia
Ambassadors of EU member states interested in reopening tourism sector in Georgia
Turkey's export of defense products from January through May 2020 declines
Magnitude 6.8 earthquake hits northern Chile, copper mines say unaffected
France says latest U.S. trade threats over digital tax a 'contradiction'
SOCAR subsidiary starts producing raw material for medical masks fabric
Azercell introduces new “Mobile TV” service for kids
Trump administration set to bar Chinese passenger carriers from flying to U.S.
Investments help Kazakhstan raise agriculture goods processing
Turkmenistan's Dashoguz region growing foreign potatoes
Italy may use new Kazakhstan-tested platform to track quarantine compliance
Azerbaijani president visits military unit in Aghdam (VIDEO)
Baku Stock Exchange pays interest on bonds of Azerbaijan Mortgage and Credit Guarantee Fund
Georgia, Estonia discuss cooperation in field of transportation, tourism
Agriculture sector digitalization leads to significant money savings in Kazakhstan
Turkey's export of cars abroad from January through May 2020 slips
Airlines cut fares to help boost May traffic
Export of Turkey's export of ready-made clothes down compared to 2019
Georgia expects average cherry crop
Netherlands, Azerbaijan could create train connection
Azerbaijan developing new alternative energy project
Saudi, Russia reach deal on oil cuts, raising pressure for compliance
Uzbek textile products in great demand on French market
German bans digital doppelganger passport photos
Textile industry of Uzbekistan - fastest growing sector of country's economy
Quarantine regime to be strengthened in Kazakhstan’s Almaty city
Azerbaijani enterprise starts exporting canned goods to US
EU implements new projects to support vulnerable groups in Georgia
Payments of insurance claims by four Azerbaijani insurers decline
Export of Turkey's leather products to int'l markets down
Azerbaijani Azexport portal talks Facebook Shops integration
Kazakhstan's Samruk-Kazyna decreases its share in Kazatomprom
ADB continues to support Azerbaijan’s efforts to diversify its energy mix
Turkmenistan’s Turkmenhimiya opens tender to buy various equipment, spare vehicle parts
Turkey's export of wood, furniture abroad from January through May 2020 plummets
Coronavirus negatively affects almost all sectors of Georgian economy
Kazakhstan records decrease in money transfer volume
Oil, gas exploration work to be held throughout Turkey
Uzbek-Korean JV opens tender for procurement of pump repair kit
Hajj pilgrimage from Azerbaijan may not take place this year
Azerbaijan's Agricultural Insurance Fund talks managing company branding
Azerbaijan's pomegranate association aims to increase export volumes
BoE says advising banks to prepare for possible no-deal Brexit
16 insurance companies increase payment of insurance claims in Azerbaijan
Belgium to open bars and restaurants but not nightclubs
Azerbaijani president attends inauguration of Tartar branch of “Azerkhalcha” OJSC (PHOTO/VIDEO)
GNERC: Over 20% of business entities provided with internet services in Georgia
Cargo transshipment through Turkey's Antalya port disclosed
Turkey's export of grain, legumes to int'l markets marginally up
Exhibition of historical Baku photos opens on Baku boulevard (PHOTO)
Azerbaijani pomegranate association reveals new export targets
Turkey's export to D-8 countries down from Jan. through Apr. 2020
Turkmenistan’s Dashoguz region completing preparations for wheat harvesting
Sumgait Technologies Park talks export of aluminum to Central Asia
Cargo transshipment from Greece via Turkish ports disclosed
State share of Kafolat Insurance Company sold in Uzbekistan
Azerbaijan's Central Bank talks problematic insurance companies
Uzbek Ipak Yuli Bank, EBRD increasing their support to entrepreneurs of Uzbekistan
Uzbek-Korean JV buys sockets, switches via tender
Bank loans on rise in Azerbaijan
Turkey, US trade turnover suffers drop in April 2020
Azerbaijani president opens newly renovated highway (PHOTO/VIDEO)
Turkmenistan evaluates new varieties of cotton
Net revenue of Kazakhstan's KazMunayGas plummets in 1Q2020
Turkish ministry reveals cargo transshipment through local Hopa port
Azerbaijani president launches newly renovated 'Tartar' power substation (PHOTO/VIDEO)
Chamber of Commerce talks problems created by ministries' merger in Iran
Coronavirus body count in Iran surpasses 8,000
All news