Iran may use export of gas to Europe as political shield from sanctions

Baku, Azerbaijan, Feb. 4

By Aygun Badalova - Trend:

Iran may attach political importance to exporting gas to Europe, in a way to complicate the possible reapplication of sanctions against the country, David Koranyi, director of the Atlantic Council's Eurasian Energy Futures Initiative and deputy director of the Atlantic Council's Dinu Patriciu Eurasia Center believes.

Koranyi told Trend that Iran's gas production potential is enormous, however yet the country faces formidable obstacles to gas exports.

"Domestic residential demand continues to grow, and gas is needed for reinjection into oil fields to keep up production,"Koranyi told Trend.

For Iran, many obstacles to foreign investment will remain even after the sanctions have been lifted, he believes.

Koranyi mentioned that Iran also plans to build up a first class petrochemical industry and export electricity regionally instead of gas.

The country's petrochemical output capacity currently stands at 60 million tons. The Islamic Republic hopes to bring this capacity to 120 million tons by 2020 and 180 million tons by 2025.

"The current price environment in Europe does not help either, it does not seem commercially viable to bring gas all the way from South Pars to the European markets," Koranyi said.

"At the same time Iran may attach political importance to exporting gas to Europe by pipeline or LNG, as it will increase its importance and complicate the reapplication of sanctions in a worst case scenario," he added.

On January 16, the International Atomic Energy Agency verified Tehran's compliance with the Joint Comprehensive Plan of Action (JCPOA), opening the way for Iran's return to the global energy market. The same day, the US and the European Union announced that they were lifting their sanctions against Iran.

Iran holds 17 percent of the world's proved natural gas reserves and more than one-third of OPEC's reserves, according to the US Energy Information Administration (EIA). As of January 2015, Iran's estimated proved natural gas reserves were 1,201 trillion cubic feet.

At the same time, Iran is the world's third-largest dry natural gas producer, after the US and Russia. In 2013, Iran became the world's largest gas-flaring country, surpassing Russia, according to the EIA.

Last year Head of National Iranian Gas Exports Company Alireza Kameli said that the export of gas to Europe is uneconomical for Iran. He also said that exporting LNG to European markets is on Iranian Oil Ministry's top agenda.

Speaking about the oil sector, Koranyi said that Iran's return will have profound repercussions for international markets.

"Iran's barrels will add to an already oversupplied global oil markets and may drive down prices further," he said.

Iran's current oil production is estimated to be around 2.8 million barrels per day (mbpd), of which about one million barrels are exported.

Free of sanctions, the country plans to increase its oil export by 500,000 barrels per day, and then raise the figure by another 500,000 to two million barrels per day within a six month period at the next step.

France reports 10,569 new daily COVID-19 cases
France reports 10,569 new daily COVID-19 cases
Magnitude-6.1 earthquake rattles southern Philippines
Magnitude-6.1 earthquake rattles southern Philippines
Israel reports 4,300 new COVID-19 cases, 30 more deaths
Israel reports 4,300 new COVID-19 cases, 30 more deaths
Loading Bars
Latest
Third wave of COVID-19 begins in Tehran
France reports 10,569 new daily COVID-19 cases
Magnitude-6.1 earthquake rattles southern Philippines
Israel reports 4,300 new COVID-19 cases, 30 more deaths
Suspect detained for allegedly sending ricin-tainted letter to White House
Four killed in small plane crash in U.S. Texas
Kuwait reports 385 new COVID-19 cases, 99,434 in total
Biden blasts Trump's plan to push Supreme Court nominee ahead of election
Australia heads for lowest virus count in three months
Iran exploring for new oil and gas fields
5.1-magnitude quake jolts central Turkey
Czech government could declare coronavirus state of emergency, says minister
U.S. sets record with over 1 million coronavirus tests in a day
Turkey records 1,516 new COVID-19 cases
Iran's North-West Railways boosts its revenues
Loans to be issued to enterprises in Iran's Yazd Province
11 Georgian interior ministry employees test positive for coronavirus
Weekly review of major events in transport sector of Azerbaijan
Amount of loans issued by Iranian banks revealed
Kazakhstan considering possibility of creating several new digital products
Weekly review of developments in Azerbaijan's financial market
Africa's COVID-19 cases near 1.4 mln as death toll hits 33,818
Britain is at COVID-19 tipping point, health minister says
22 Thai provinces hard-hit by flash floods due to tropical storm Noul
Production of Iran's Esfahan Steel Company announced
Iran's oil exports process improved
Azerbaijan's state service lists criterias for tender transparency
Uzbekistan's cement import from Turkey more than halves
Azerbaijan's Agroleasing OJSC opens tender to purchase IT equipment
Salehi: There’s no problem for Iran to fulfill its nuclear obligations
Kazakh industrial enterprises switching to best available technologies
Japan's new prime minister Suga, Trump hold first talks by phone
Eurasia Review publishes article on Armenia-Azerbaijan conflict
Georgia’s hotels increase number of served guests
President Ilham Aliyev makes Facebook post on Oil Workers Day (PHOTO)
Export of Azerbaijani products to Belarus increases sixfold
National Iranian Steel Company reveals its production
International Sea Port of Turkmenbashi opens tender for repair of equipment
Bahar Azadi gold coin price again rising in Iran
Turkey’s Ministry of Agriculture opens tender to attract consulting services
Iranian Energy Exchange announces products to be on sale September 21
Kyrgyzstan reports 81 new COVID-19 cases
European tourism industry owners keen on investment in Gorgan tourism sites: Official
Tbilisi joins European Mobility Week
Azerbaijan reports 154 new COVID-19 recoveries
Azerbaijan’s Azersu company opens tender to buy polypropylene fittings
Number of people infected with coronavirus pandemic in Iran exceeds 420,000
Turkish Presidential Administration: Any aggression against Azerbaijan - aggression against Turkey
Russia's COVID-19 cases up 6,148 to 1,103,399
Income growth in Uzbekistan slows down amid COVID-19
Demand for Kazakhstan among Turkish job seekers soars
Value of Iranian mining companies’ shares spike
Kazakhstan's National Bank talks COVID's impact on IT segment, mobile banking in country
128 new COVID-19 infections confirmed in Egypt
Georgia reports 196 new COVID-19 cases
Turkey offers international training on combatting desertification
Eni Turkmenistan Limited opens tender for supply of industrial lube oil
Iran discloses details of cement exports
Azerbaijan’s import of Ukrainian-made products down
First steam unit of Iran's Ferdowsi TPP launched
2 soldiers killed in operation against militants in NW Pakistan
Member of Tbilisi Sakrebulo confirmed with coronavirus
Tehran to host 1st Eurasian exhibition by end of year
Armenia violates ceasefire with Azerbaijan 30 times
Kazakhstan confirms 63 new COVID-19 cases
TikTok hopes three-party agreement between ByteDance, Oracle, Walmart to resolve U.S. concerns
US Department of Commerce postpones TikTok download ban for a week
UNWTO talks ways to restore tourism in Turkmenistan in post-pandemic period
Viola von Cramon: Georgia is moving in right direction, I hope that this tradition will continue at 2020 elections
About 9,000 migrants on Greece's Lesbos move into tent camp after fire
UK's Johnson to levy 10,000 pound fine on COVID-19 rule-breakers
Canadians urged to take action against spread of COVID-19 as caseload reaches 141,911
Death toll from COVID-19 in Brazil over 136,000
UK daily coronavirus cases hit four-month high with 4,422 more cases
Trump says he’s approved Oracle deal for U.S. Tiktok
Iran's Zarif says world should oppose U.S. sanctions or expect same
Rolls-Royce plans to raise up to £2.5 billion as COVID-19 bites
Moscow's death toll from confirmed coronavirus cases rises by 13 - crisis center
Turkey reports 1,538 new COVID-19 cases, 68 deaths
Tajikistan decreases export volumes to Kazakhstan
Police clash with protesters at anti-lockdown demonstration in London
Georgian PM: Our victory must be an economically strong, educated, fair and European state
Iran's Persian Gulf Bid Boland Gas Refining Company declares amount of revenues to be received
Uzbekistan’s car manufacturing company to issue shares for public offering
Trump says he will name Supreme Court successor to liberal Ginsburg 'without delay'
Commander of Azerbaijani Naval Forces comments on information in social networks about Turkish coordinating officer
Gas transportation in Iran expands
Two dead as destructive storm Ianos hits central Greece
Kazakhstan decreases goods export to Ukraine amid COVID-19
Iran and Turkey's gas trade depends on future exploration in the Black Sea
President: If Azerbaijan had been an independent country then, we could have become the richest country in the world
Poland reports over 1,000 new COVID-19 infections, record high since outbreak
CEC sets coronavirus-related safety guidelines for Election Day
China's economy remains resilient despite external risks, says Xi
Iran's Bahar Azadi gold coin price falling
Iranian Energy Exchange announces products to be on sale September 20
Azerbaijani energy minister stresses importance of co-op within OPEC + format
Ukraine becomes popular destination for Turkish citizens looking for job
General Inspection Organization of Iran strengthen monitoring of banks
Uzbek-Chinese Asia Trans Gas to buy coolant and lubricants via tender
All news