Plans underway for gas export to neighboring regions

June 1, 2020 - 14:44

TEHRAN- Iran is planning to export gas to the neighboring regions, especially the Kurdistan region of Iraq, the managing director of National Iranian Gas Company (NIGC) announced.

"Tehran is studying plans to deliver gas to areas bordering Iran in the semi-autonomous region of Kurdistan in neighboring Iraq," Hassan Montazer Torbati said while elaborating on Iran’s plans for gas exports to new regions and countries, Fars news agency reported.

The official noted that the authorities in the Iraqi Kurdistan Region have submitted several requests for the start of gas supply from Iran to the bordering regions.

He also said that the Iranian Oil Ministry’s department for international affairs is currently working on a contract for launching gas exports to Oman.

In relevant remarks in January 2019, Montazer Torbati said that Iran was supplying a total of 800 million cubic meters/day of natural gas or 5 mbd of oil equivalent.

Regarding ongoing gas exports to Iraq, the official said Iran was currently exporting gas to Iraq’s Basra and Baghdad and received its dues accordingly.

He also said that Iran needed no gas imports currently, adding a dispute with Turkmenistan regarding the latter’s disruption of gas flow to Iran’s northern provinces had been taken to international arbitration, adding the case was being pursued through relevant legal channels.

Montazer Torbati also said on Sunday that the conditions governing Iran’s long-term gas contracts probably undergo essential changes after the coronavirus pandemic, Press TV reported.

The comments come after reports in recent days suggested that Turkey, a main customer of Iran’s natural gas, is unwilling to repair a pipeline damaged in an explosion in late March as it seeks lower prices in the light of a recent fall in international crude prices.

Gas export deals designate oil prices as a benchmark for determining gas prices although any price change would need at least six months to take effect.

Montazer Torbati told the semi-official ILNA news agency that Iran would introduce new pricing mechanisms in gas export deals in future, without elaborating on how they would work.

He said Iran would also start negotiating with Turkey about an extension to the current gas export deal beyond 2025.

The NIGC chief said Iran would always remain a reliable supplier of natural gas to Turkey despite changes that are taking place in the country’s energy market where the government is allowing more activity for the private-sector suppliers.

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