Iran prioritizes regional and Asian gas markets (exclusive)

Business Materials 9 August 2016 19:05 (UTC +04:00)

Baku, Azerbaijan, Aug. 9

By Dalga Khatinoglu – Trend:

Iran’s gas output has reached 750 million cubic meters per day (mcm/d), Iranian Deputy Oil Minister Amir Hossein Zamaninia told Trend Aug 9.

He said the volume will rise to 1,000 mcm/d by the next 1.5 years and Iran will have the capacity to export 200 mcm/d of gas. Currently, Iran exports 27 mcm/d of gas to Turkey and imports the same volume from Turkmenistan.

Zamaninia added that Iran intends to export gas via pipeline to regional countries and prioritizes Asian markets for exporting liquefied gas.

Iran is ready to negotiate for exporting gas through the southern corridor, but for the time being, gas exports via pipeline to Europe is not economically justifiable, he said.

“Even in liquefied gas exports, our priority is Asia, not Europe. But, Iran wants to diversify gas exports. So, Iran is holding talks with Russia and Azerbaijan in order to create balance between supply and demand in the world. We should increase demand for gas as a clean fuel,” Zamaninia added.

According to him, Iran’s potential for gas export will be increased in the future because some 200 mcm/d of gas is wasted in Iran, but some projects worth $20 billion have been defined for the next 5 years to improve fuel efficiency and prevent wasting such a volume of gas.

Gas holds a 70-percent share of energy basket in Iran.

Zamaninia believes that the rise in gas consumption will be possible through reducing wastes, and gas consumption over the next years will be equal to the current level of 700-750 mcm/d.

A major portion of power plants and industries are being fueled with gas, he said.