Gas export is not Iran’s first priority

Baku, Azerbaijan, Nov. 24

By Umid Niayesh, Mehdi Sepahvand- Trend:

Gas export is not the Islamic Republic's first priority in long-term perspective, Narsi Ghorban, Iranian energy expert, told Trend July 8.

Iran's situation is not similar to Qatar or even Azerbaijan and Turkmenistan, the expert said, adding that Tehran's priority regarding gas, is focused on meeting the domestic demand, including allocation of gas to local industries.

Iran has the long-term potential to become one of the world's top gas producers, thanks to its 34 trillion cubic meters of natural gas reserves, which amounts to some 18 percent of the world's total.

Tehran increased gas production by 10 percent to 202 billion cubic meters per annum (bcm/a) last fiscal year, ending on March 20, while the figure re-increased by five percent during the first half of current fiscal year, according to Iran's Oil Ministry.

However, all of the increased output has been absorbed by domestic sectors, while huge gas shortage in some sectors like electricity generation and re-injection of oil fields with gas continues.

Ghorban also touched upon the recent Gas Exporting Countries Forum (GECF) summit saying the forum is mostly a consultative, not a decision-making one.

Responding a question about the GECF role in determining world gas price, Ghorban said setting price is not on the GECF agenda. He said that the gas prices are regional, not global.

The 3rd GECF Leaders Summit was held in the Iranian capital of Tehran Nov. 23.

Russia, Iran, Qatar, Algeria, Bolivia, Egypt, Equatorial Guinea, Libya, Nigeria, Trinidad and Tobago, Venezuela, and the United Arab Emirates, are main members of the gas exporting body.