Iran eyes to review gas export contracts

Oil&Gas Materials 30 May 2020 17:51 (UTC +04:00)

TEHRAN, Iran, May 30


Iran's long term gas export contracts would go through serious changes in the post-coronavirus period, said Deputy Oil Minister of Iran.

"Normally, the price of gas in current contracts has been following the price of crude oil or oil products set in past six or nine months; but when the price of oil products drops sharply, the price of gas would not fall as fast," said Hassan Manzartorbati, Trend reports citing ILNA.

"It has been predicted that in the future, gas contracts will follow new models in pricing," he said. "Iran's gas export to Turkey has stopped since March 31 due to pipe line explosion; in addition, considering the coronavirus spread, the state-owned petroleum pipeline company BOTAS has extended overhaul duration."

"The issue is being legally followed, and we have given contract notice to BOTAS over the long duration of fixing pipeline," the deputy minister added. "Negotiations for extending contract with Turkey after 2025 will start in near future after the coronavirus pandemic is over."

"Iran's gas export to Iraq continues, although there have been news of US pressure on Iraq to find alternative for Iran, while gas contracts can not be changed since they require massive investment. We try to preserve Iraqi market," Manzartorbati said. "The Iraqi Kurdistan Region has requested to buy gas from Iran in several stages."

"In order to export gas from Iran to Oman, 24-inch Minab-Sirik-Jask pipeline has been designed, and the Oil ministry is to negotiate the gas export contract with Oman," he said.