Iran intends to attract dozens of billion dollars of foreign investments and construct the required infrastructures to help it gain at least a 10% share in international gas trade.
Despite its 34 trillion cubic meter gas resources and being the largest owner of natural gas in the world, Iran’s share of the world gas trade is today less than 1%.
In a bid to increase its share of the international gas trade, Iran has started negotiations with various countries that need this relatively clean energy source as of a few years ago and signed both memoranda of understanding (MOUs) and contracts for gas exports to neighboring, Middle East and farther countries.
Today, with its 30 billion cubic meter gas imports from Iran, turkey is the largest gas client of this country, while Iran also has a small gas trade with Armenia and Azerbaijan republics.
In a few months time Iran’s gas exports to Iraq is scheduled to begin in accordance with a contract signed a couple of years ago and in accordance with a new contract with Iraq, another pipeline will transfer Iran’s gas to that country through Basra as of two years from now when the required pipeline will be completed.
World gas market analysts believe Iran enjoys numerous privileges for entering the international gas market mightily, including and most important than all there is Iran’s huge natural gas resources.
There are also the existence of a huge network of natural gas pipelines and refineries, closeness to target markets, the possibility of transiting gas to Europe and littoral states on the southern coasts of the Persian Gulf and the Sea of Oman, and Iran’s capability to swap Central Asian gas to its neighbors in the West, East and South.
International gas tenders
Iran is planning for sponsoring a number of international tenders on construction and completion of five major tans-Iranian gas pipeline after the near future termination of sanctions to increase the country’s infrastructures for boosting the country’s production capacity up to 1.2 billion barrels per day.
Meanwhile, simultaneously with the progress achieved in upper hand oil industry projects and the resulted increase in gas production the task of designing, construction, installment and putting to use 64 new gas pressure facilities and new gas refinery units are being pursued rapidly and seriously.
The conducted estimations indicate that the National Iranian Gas Company (NIGC) needs some 40 billon dollars of new investments to double the capacity of its natural gas transfer and refining capability and it has been agreed that that amount will be provided through local and international investments.