TEHRAN- Iran, relying on the world's second-largest gas reserves, seeks to expand exports to its energy-thirsty neighbors in order to consolidate its role in regional security and trade.

According to Mehr News Agency, Iran, as one of the world's primary holders of gas reserves, has always faced numerous challenges and opportunities in the field of energy diplomacy. While demand for natural gas in the West and South Asia is increasing rapidly due to industrial growth and the need for electricity, many neighboring countries are grappling with a lack of domestic resources or challenges in securing sustainable energy. This situation has created high demand in the markets of Turkey, Iraq, Pakistan, Oman, and India, where Iran, by leveraging its geopolitical position and existing infrastructure, can emerge as a major supplier to meet part of these countries' needs.

Although in recent years factors such as international sanctions and the need for heavy investment in the development of fields and transmission pipelines have prevented maximum exploitation of these opportunities, economic necessities and the urgent need of neighbors for sustainable resources continue to act as a primary driver. This report examines various dimensions of demand in these markets and the prospects for Iran's interactions with them. In fact, Iran's geographical position is such that it can act as an energy bridge between its rich domestic resources and major consumption centers in the west and east. This capability, combined with the growing needs of neighbors for cheap and reliable energy, has created a strategic opportunity that, in addition to generating foreign exchange earnings, can also strengthen Iran's political position in global equations. Given the global increase in demand for cleaner fuels, natural gas as a transition fuel has gained a more prominent role, and this has added to the attractiveness of regional markets for major suppliers.

* Export infrastructure caught between politics

Turkey, as the gateway for Iran's energy to Europe, and Iraq, as the current main customer, hold special positions in gas policies. While Turkey seeks to diversify its sources and become a gas hub, Iraq remains dependent on Iranian gas for its power plants. Iran-Turkey gas relations have always been a mix of stable commercial interactions and price negotiations. For Turkey, Iranian gas is vital not only for domestic consumption but also to feed its growing industries. On the other hand, due to war-damaged infrastructure and an urgent need for electricity to prevent social crises, Iraq has consistently required cheap and accessible Iranian gas.

Although efforts have been made to increase gas production in Iraq, the supply-demand gap in the country remains. Turkey, despite access to Azerbaijani and Russian pipelines and LNG terminals, still views Iranian gas as a complementary source. These two countries have shown that despite external pressures, they prioritize their energy security above all else. Meanwhile, optimal management of pipelines and ensuring the stability of gas flow can transform Iran from an ordinary seller into an irreplaceable partner. The importance of these ties becomes more evident during cold winter years when domestic demand in Iran and its neighbors peaks. Therefore, gas cooperation is not merely a commercial transaction but a guarantee of political stability among neighboring countries.

* Stalled projects in South Asia

The Peace Pipeline between Iran and Pakistan, which has been stalled for years due to political pressures and financial constraints, symbolizes the region's unresolved energy potential. Pakistan faces an energy shortage crisis, and India seeks to increase gas's share in its energy basket — factors that have left these markets thirsty. The Indian subcontinent, with its billion-plus population, will be the world's thirstiest energy market in the coming decades. Projects like the Peace Pipeline, although initially designed with an economic approach, became entangled in the complexities of global power politics. Due to an inability to secure financing and fear of sanctions, Pakistan has so far been unable to complete its portion of the pipeline. However, Pakistan's need for energy is so acute that its authorities have repeatedly emphasized the necessity of completing this project. India, as one of the world's largest energy consumers, although currently meeting its needs through LNG, could see a significant reduction in energy costs via a pipeline. Competition among suppliers in this region is very intense, with Russia and the Gulf states vying for market share. In the meantime, Iran offers the only secure and cheap land access to these markets. If active diplomacy can remove the obstacles, this route could bring about a major transformation in Iran's economy.

* Strategic capacities in the Persian Gulf

Oman can act as a strategic point for gas exports. Developing a submarine pipeline with this country, in addition to meeting Oman's domestic needs, would enable the use of LNG facilities for exports to global markets — a golden opportunity. Due to its geographical position at the mouth of the Persian Gulf, Oman is an ideal partner for Iran in export development. Beyond Oman's direct need for Iranian gas, the country possesses advanced infrastructure for gas liquefaction. Exporting Iranian gas to Oman and converting it into LNG could free Iran from pipeline transmission constraints and allow access to distant Asian and even European markets. This cooperation could serve as a model for other Persian Gulf states. Of course, success in this area requires advanced technologies for constructing deep-sea pipelines and attracting foreign investment. Nevertheless, the competitive advantage of Iranian gas compared to other suppliers makes this project economically viable. Oman, by accepting this role, could emerge as a new energy hub in the southern Persian Gulf, tying the interests of the two countries together. If implemented, this strategy could neutralize a large portion of export sanctions and open new paths for energy trade.

* Conclusion

Gas markets around Iran are thirstier than ever for a stable energy supply. Iraq, due to its urgent need for electricity, remains at the top of the customer list, and Turkey, despite intense competition, is still considered a strategic market. However, real exploitation of the potential in Pakistan, India, and Oman requires overcoming diplomatic obstacles and attracting foreign investment. For Iran to become a major player in this arena, it must not only rebuild its aging production infrastructure but also seriously revise its energy diplomacy. Changes in regional equations and countries' desire to reduce energy costs have created a golden opportunity for Tehran that should not be overlooked.

If these interactions are structured on the basis of long-term contracts and away from political tensions, they can create a sustainable foreign exchange flow for the country and enhance Iran's regional standing. The future of regional gas trade depends not only on production capacity but also on the art of diplomacy in connecting to these consumption networks. Ultimately, smart investment in transmission projects and leveraging transit capacities can transform Iran from a traditional exporter into a major hub in Asian gas trade. This challenging but profitable path is a way to ensure national security and sustainable economic development in the decades ahead, requiring national determination and a realistic approach to foreign policy. Finally, sustainability on this path requires Iran to be recognized as a reliable supplier. Achieving this position necessitates commitment to contracts and improving production capacity at the South Pars gas field and other fields to meet both domestic needs and exports. By aligning macroeconomic policies with energy diplomacy, Iran can become known as the region's top gas power in the world.

EF/MA