Russia offers to construct 4 gas pipelines in Iran

Business Materials 19 September 2014 16:40 (UTC +04:00)

Tehran, Iran, Sept. 19

By Milad Fashtami - Trend:

Russian companies have offered to construct four cross-country gas pipelines in Iran for export purposes.

Asghar Soheilipour, an official with the National Iranian Gas Company, said that the 6th, 7th. 9th and 11th cross-country gas pipelines are the mentioned pipelines, Iran's SHANA News Agency reported on Sept. 19.

He went on to note that NIGC has signed a memorandum of understanding for construction of Iranshahr-Chabahar pipeline.

"The project will come on stream at the cost of $700 million," he said. "The mentioned pipeline is part of the 7th cross-country pipeline."

Russian Energy Minister Alexander Novak said on Sept. 10 that investing in Iran's oil and gas sector is interesting for Russian companies.

"Moscow is ready to carry out 70 billion euros worth of projects in Iran," he said.

He went on to note that the two countries' presidents will hold a meeting to discuss issues of mutual interest in near future.

"We have been informed that Iran plans to construct 20 new nuclear power plants," Novak said. "We seek to open a new chapter in bilateral cooperation."

Iran and Russia signed a memorandum of understanding for cooperation in the oil sector on Sept. 9.

Iranian Oil Minister Bijan Namdar Zanganeh and Russian Energy Minister Alexander Novak signed the document at the end of the 11th meeting of Iran-Russia Joint Cooperation Commission. The documents include bilateral cooperation in different fields such as industrial, mineral, trade, agricultural, tourism, technology, border issues, and energy.

The two sides also agreed to do their bank transactions by national currencies.

"Iran and Russia's trade value currently stands at 1.5 billion dollars but the figure will rise by ten times in the next two year," Zanganeh said.

It was previously reported that the two sides will discuss bartering goods for petrochemical products and chemical catalysts during the two-day talks in Tehran. However, Zanganeh rejected the claims, saying the two countries have no contract for bartering.

Novak previously said that U.S.-generated sanctions will not affect the two countries bilateral relations.

Iranian Energy Minister Hamid Chitchian said on Sept. 9 that Russia plans to invest $10 billion in construction of eight new thermal power plants in Iran.

"The plants' total production capacity would be 2,800 megawatt (350 megawatt each)," he said.

"Four of the mentioned power plants will be constructed in [southern city of] Bandar Abbas, two others in [central city of] Tabas, and the remaining two in [western city of] Sahand New City," Chitchian said. He adding that the environmental studies are underway to construct two power plants in the northwestern city of Tabriz.

According to the Iranian minister, Russia companies will carry out renovation operations in Ahvaz's Ramin power plant and Isfahan's Shahid Montazer power plant.

According to Novak, Moscow plans to do renovation operations in four Iranian power plants in cooperation with Iran Power Generation Transmission & Distribution Management Company (TAVANIR).

Iranian Oil Minister Bijan Namdar Zanganeh said on September 6 that Iran sees no limits to expand economic ties with Russia.

"The two sides will explore ways to expand economic ties, particularly in agriculture, transportation, mining, energy, and technology transfer," the Shana news agency quoted Zanganeh as saying.

On August 5, Russia and Iran signed a Memorandum of Understanding for a period of five years, signaling a sharp intensification in economic cooperation between the two countries. The document lays the foundation for a comprehensive multi-billion dollar deal for trade in the oil sector between the two nations.

At the time Russian Energy Ministry said that the memorandum provides for the expansion of trade and economic cooperation in the fields of construction and reconstruction of power generating capacity, the development of power grid infrastructure, the oil and gas sector, as well as the supply of machinery, equipment and consumer goods.