Baku, Azerbaijan, Jan. 28
By Maksim Tsurkov - Trend:
Iran is unlikely to begin exporting its own gas to Europe for the next ten years, Alexander Sharov, the expert, the deputy head of the Iranian department at the Shanghai Cooperation Organization (SCO) Business Club, said.
"At present, the gas extracted in Iran is mainly used to increase the oil production," Sharov told Trend. "Gas is pumped into the layers to maintain pressure."
"Iran has huge potential in terms of gas production," he said. "But now most of the gas produced in the fields is pumped back into the well. Up to 25 bcm of gas are pumped annually only at one field - Yadavaran."
"The water-salt solutions could be used for this purpose and gas could be supplied for export and domestic consumption," he said. "It is impossible to construct a gas pipeline to Europe via Turkey, taking into account both economic and political factors."
He said that Iran will be more engaged in gas processing, rather than its export in the next years.
"The 15th and 16th phases were launched at the giant South Pars field in December," he said. "Iran was building gas chemical complexes of the gas from this field. Each of them is capable of processing about 10-15 bcm of gas per year."
"Such large gas-chemical complexes were built in Asaluyeh, namely, Jam, Zagros, Parsian, Marun and others," he said. "The large methanol, ammonia production facilities are being built in Iran now. Any surplus of gas will be processed into gas-chemical products in the coming years. It is possible to sell them easier and with more profit. Iranian gas is unlikely to be supplied to Europe in the next ten years."
He added that the pipeline's construction to Oman, through which Iran will supply 10 bcm of gas annually, is real.
"Iran and Oman have very close and trustful relations. In addition, there is need to build a total of 50 kilometers of sea part at the bottom of the Strait of Hormuz at the depths of 80-200 meters," said Sharov.
"But even there, the gas will not be exported further and will be processed into liquefied natural gas (LNG) at the plant built at the Iranian bank's expense," he added.
European market is not attractive for Iran n terms of sales of LNG, according to him.
"I think that Iran will find consumer to sell its 1.5 million tons of LNG much more expensive. For example, LNG prices will be higher in Japan," said Sharov.
"The example of Qatar is demonstrative, which sells LNG at a loss. Europe's supply at low prices leads to it," he added.
He noted that Iran plans to launch seven large complexes, each of which is designed to release 6-10 million tons of LNG annually.
"A part of projects was implemented prior to the imposition of 70 percent sanctions. However, we are unlikely to see the launch of these LNG projects in the next two or three years in Iran," said the expert.
"The fact is that the US now actively releases its LNG to the world market, and the Iranian projects will be at the stage of study and examination in the near perspective," he added.
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