Iran gas export to EU in post-sanctions era

Iran gas export to EU in post-sanctions era

Baku, Azerbaijan, May 23

Trend:

The sanctions on Iran were removed in January 2016, and that paved the ways for Iran’s gas flow to EU, but the country still faces with gas shortage itself.

Dalga Khatinoglu, commentator on Iran’s energy issues and head of Iran news service at Trend Agency, told Istanbul-based Alsharg Forum think tank that Iran's gross gas output reached 285bn m3 last year, about 9.3% more than in the previous fiscal year, and housing gas demand has increased from 91 billion m3 (cubic meters) to about 100 billion cubic meters.

“Of course the sweet gas (refined gas) output is around 220-230 billion cubic meters. But still around 2 of 21 million households do not have access to gas. In the future, the demand in this sector would rise, unless Iran enhances energy efficiency in this sector. For now, Iran has approved $2 billion worth of investment to optimize 600,000 central heating systems in apartments. Iran says it can economize at least 60 billion cubic meters /year of gas by optimizing energy usage in housing, power plants (with the current 37% efficiency) and other sectors by 2021,” Khatinoglu said.

Iran’s gross and commercial gas output (mn m3/d)

Coming to Iran’s ability to become a reliable gas supplier to EU, Khatinoglu said that Iran's problem is not restricted to consumption.

“South Pars, which shares about 55 percent in total sale gas output and projected to share 65% by 2019, is expected to reach dew point and pressure fall in 2023. Iran can compensate a part of fall by launching 10-times heavier platforms (20,000 tons) with 2-3 compressors at each, but the production level would decrease by at least 10% again”.

Iran needs further $20 billion of investment in South Pars to complete that, and further $30 billion is needed to maintain the output level after 2023, Khatinoglu said. He added that therefore, Iran needs gas output growth from other fields.

Iran plans to issue tenders on 49 oil and gas fields, based on newly contract model, IPC, but it is under question whether Iran can develop them regarding US' probable sanctions.

Iran has two deals with Iraq. Khatinoglu said that it may start gas deliveries to Baghdad this or next year, but in restricted volume, because Iran has to complete a pipeline (Igat6) with $2 billion of investment to connect the pipeline in Iraq to South Pars.

Another pipeline would be constructed to connect Igat6 to Iraq’s Basra. In total, exporting 18 billion cubic meters /yr gas is projected through two routes.

“Coming to 10- billion cubic meters /yr gas deal with Oman, I think the deal can realize in 3-4 years, not earlier. Oman's gas output is expected to increase significantly by 2020, then after that time, Oman may decide seriously on Iran gas and construction of undersea pipeline,” he said.

The TANAP-TAP twin pipelines are expected to become operational for natural gas exports to Europe by the end of the decade, aimed to transit 16 billion cubic meters /yr of Azerbaijani gas to Turkey and South European countries.

Answering a question about the prospects of Iranian gas flow though this infrastructure, Khatinoglu said that Iran should firstly construct a 1800km pipeline (Igat9) with 17 compressors and have at least $6-8 billion worth of investment, to connect South Pars to Northwestern regions.

“The capacity of pipeline would be 110 million cubic meters/d. Then Iran can talk about gas exports to EU or rising gas supply to Turkey after getting allowance from TANAP and TAP shareholders,” Khatinoglu said.

“The current infrastructures only allow increasing 1.5 billion cubic meters/yr gas export to Turkey, but only in spring and summer, because in cold seasons the housing gas demand triples in Iran. SGC partners already invited Iran to deliver its gas, because Tanap and TAP would have 15bn m3/yr and 10bn m3/yr of idle capacity by mid 2020s,” he said.

Coming to exporting LNG, Khatinoglu said that Iran has an LNG project, half done, with 14 billion cubic meters /yr, but it needs at least $6-9 billion of investment to become operational.

“It is expensive for Iran, which suffers from financial problems. And if France’s Total or other company resumes development of this project in Iran today, it would take 4-5 years for this project to become operational,” Khatinoglu said.

“I have doubts that Total is keen to get involved in this project, which Iran claims it completed by 50%. Iran’s Oil minister Zanganeh also said earlier that he doesn't see Total's proposal as being serious. Liquefying its gas in Oman's idle LNG capacity is more profitable for Iran, but in total, I think Iran can become LNG exporter to EU in the middle of next decade”.

Number of inquiries related to computer security in Azerbaijan drops
Number of inquiries related to computer security in Azerbaijan drops
Azerbaijan has potential to preserve qanats in Karabakh - Iranian researcher
Azerbaijan has potential to preserve qanats in Karabakh - Iranian researcher
Azerbaijan to develop transport sector on territories liberated from Armenian occupation
Azerbaijan to develop transport sector on territories liberated from Armenian occupation
Loading Bars
Latest
Turkish MoD congratulates Azerbaijani people on victory in Patriotic War
Georgia reports 4,033 new cases of coronavirus
Number of inquiries related to computer security in Azerbaijan drops
New hydrocarbon reserves discovered in Turkmenistan
German Energy Agency supports dev’t of energy-efficient housing refurbishment in Uzbekistan
German retail sales rise more than expected before partial lockdown
Uzbekistan to receive observer status in EAEU
Eni revises up Azerbaijan’s gas reserve estimates
Georgia discloses forecast revenue of Tbilisi Transport Company
Azerbaijan talks major restoration work to be carried out on liberated territories
Turkey says export of local defense products to Iran surges
US decreases exports to Kazakhstan year-on-year
World’s gas reserves slightly up y-o-y
Azerbaijan has potential to preserve qanats in Karabakh - Iranian researcher
Azerbaijani MFA talks information about French MPs' planned trip to Karabakh
Azerbaijan to develop transport sector on territories liberated from Armenian occupation
Prices on Azerbaijani oil change
Kazakhstan taking measures to double agriculture goods export via digitalization
Kazakh KazMunayGas to continue improving sustainable dev't activities
Turkmennebit State Concern puts new productive wells into operation
Azerbaijan can take steps to include its underground water channels into UNESCO list
Turkey's October 2020 car exports to France increase
Azerbaijan's AccessBank looks to regain share in agricultural lending
UAE boosts import of defense industry products from Turkey
Uzbek Agriculture Ministry reveals volume of harvested raw cotton
Iranian currency rates for December 2
Trading in shares of Xiaomi halted pending share sale, bond issue statement
Demand for Turkish cars in Kazakhstan increases
Albgaz invites bids for maintenance of TAP section in Albania
Albania ready to offer full range of gas network maintenance services for TAP
Azerbaijani currency rates for Dec. 2
Fuel demand to recover over 2021-2022, while growth rates to soften
Turkmenistan’s Turkmengas plans to increase productivity of wells
Uzbekistan reveals its COVID-19 data for December 2
Cargo traffic to/from Azerbaijan via NSTC carried out regularly
Azerbaijani branch of Romanian IT GRUP talks plans for 2021
OPEC+ failure could be highly detrimental for oil prices
SecGen of OIC sends letter to President of Azerbaijan
Gov't spokesman warns against quick decisions on Iran's nuclear program
Kazakh power networks maintenance company to buy construction materials via tender
Japan ruling party weighs up inheritance tax exemption for foreigners
Iran ready to share scientific achievements with friendly countries
Georgia to increase price of natural gas for commercial consumption starting January
Singapore becomes first country to approve sale of lab-grown meat
Turkey, EU cooperation key to fight hate, discrimination in Europe: Comms Director Altun
683 COVID-19 cases among schoolchildren registered in Kyrgyzstan in 3 months
State-owned enterprises in Georgia lose about 130 mln GEL due to pandemic
Eurozone manufacturing sector expands at slower pace
Borrell highlights terrorist nature of Fakhrizadeh assassination
Kazakhstan invites Hungarian companies to jointly hold geological exploration
Bezos' Blue Origin taps former Pentagon, NASA officials for new advisory board
Ford announces 580 mln USD investment in Argentina
Cement price up in Uzbekistan due to decrease in production volumes
House seen backing bill that could block Chinese firms from U.S. securities markets
Lebanon central bank can keep subsidies for only two more months
Nigerian troops kill 5 gunmen, rescue nine hostages
Israeli archaeologists discover 2,000-year-old game dice
Tesla CEO says he is open to friendly deal with rival carmaker
Uzbekistan’s export of furniture products to Italy down
Iran increases exports from Gilan Province
Kazakhstan’s freight transportation operator opens tender to buy spares
FAA issues new first air certificate for Boeing 737 MAX since 2019
Number of Kyrgyzstan’s recoveries from COVID-19 reaches 64,711 with 560 new ones
Georgia to participate in discussion on Black Sea security at NATO Foreign Ministerial
Bahar Azadi gold coin price rising in Iran
Turkey to start COVID-19 vaccination drive after Dec. 11
COVID-related restriction may complicate procedures for car registration in Georgia
Euronews prepares reportage from Azerbaijani Aghdam liberated from occupation (VIDEO)
AP highlights aspects of Armenian Armed Forces withdrawal from districts of Azerbaijan
Israeli airline conducts 1st commercial passenger flight to UAE
Humiliating prisoners of war is not characteristic of Azerbaijani people - State Security Service
Quarantine regime to affect some investment projects of Kazakh national oil company
Equal number of Russian, Turkish personnel to work in center to control ceasefire in Nagorno-Karabakh
Georgian IT sector to arouse investor interest
Azerbaijani marine infantry personnel return to place of permanent deployment (PHOTO)
Delivery process of logistic support assets for peacekeeping contingent in Azerbaijan continues (PHOTO/VIDEO)
Georgian economy sees decrease due to COVID-19 lockdown
Return of Lachin district by Azerbaijan has not only important political, but also economic significance - Georgian expert
AP publishes article highlighting political success of Azerbaijan over Karabakh conflict
Foreign trade operations between Azerbaijan and Poland up
Georgia reveals details of Fourth Stage of Anti-Crisis Plan
Azerbaijani Culture Minister gives interview to France 24
Gradual liberalization of wholesale and retail electricity markets defined in Georgia
Import of aluminum by Azerbaijan up
Georgia approves volume of external debt planned for 2021
Development of well-functioning gas hub to diversify Georgia’s gas market
Uzbekistan, Belarus eye signing mutual tourism dev’t agreement
Demand for tobacco products in Azerbaijan may decline amid pandemic crisis
UAE based company to grow cannabis in Uzbekistan’s Syrdarya region
Fiat brand to electrify 60% of its models by end-2021
Azerbaijani Finance Ministry auctions state medium-term bonds
Georgian hazelnut-producing company faces with complex logistics
Iranian Energy Exchange announces products to be on sale on December 2
Number of phishing attacks on Azerbaijani web sites down
European culture to have new dimensions with Lachin's liberation - US expert
Enagas working on 12 projects in hydrogen developments
Spanish Enagas moving towards more sustainable energy model
Azerbaijan's mortgage fund puts up new bond tranche for auction
Georgia names number of beneficiaries of discount cards under agro-diesel promotion program
World Bank helps Georgia to purchase equipment in its fight against coronavirus
All news