Iran and Russia have agreed to improve collaboration in the development of energy sector in Iran.
In a meeting attended by Iran’s Energy Minister Reza Ardakanian and Managing Director of Russian Power Machine Company Alexander Konyukhov in St. Petersburg, the Russian side expressed its readiness to finance and implement Iran’s power plant projects, the Energy Ministry’s news portal Paven reported.
The Russian engineering company has been contracted by Moscow to use Russian funds to build a power plant in southern Iran. Iranian companies and manufacturers will also contribute to the project.
While welcoming the interest of Russian Power Machine Company for cooperating with Iranian companies, Ardakanian considered the use of Russian government’s loans as the most important motivation of the Iranian side in delegating Sirik Thermal Power Plant project in Sirik County, Hormozgan Province, to the Russian company.
Konyukhov further said the construction of the 1,400-megawatt Sirik Power Plant will start soon.
Russia had signed an agreement with Iran to build the 1,400-MW power plant in 2016, but the project stalled due to administrative and funding problems.
Now $1.7 billion have been allocated to the project, of which $1.4 billion will be paid by the Russian side.
Power Machines Company is a global power engineering entity and one of the world’s top 10 industry leaders in terms of installed-equipment volume. It has a wealth of experience and expertise in engineering-design, manufacturing and supply equipment for thermal, nuclear and hydro power plants.
The project is considered a key step toward stabilizing electricity network in the underprivileged regions of southern and southeastern Iran.
Power Machines Company has also signed a memorandum of understanding with Iran’s Thermal Power Plants Holding Company, based on which the Russian firm will finance the project to modernize and develop the 1,850-MW Ramin Power Plant in Ahvaz, Khuzestan Province.
Russian officials have voiced interest in expanding economic ties with Iran. The two sides have held wide-ranging talks on ways to promote collaboration in the fields of energy, railroad and aviation.
Russia has also built the first unit of Iran’s sole nuclear power plant in Bushehr Province. The second and third Bushehr reactors are scheduled for launch in 2024 and 2026 respectively.
While in Russia, Ardakanian also met with Victor Khmarin, the managing director of RusHydro, and hailed cooperation with the Russian hydroelectric power generation company.
Ardakanian welcomed the investment of Russian side in the fields of geothermal and renewable energies in Iran.
The Iranian minister met with the secretary-general of Eurasian Economic Union with the objective of accelerating Iran’s negotiations with the organization and signing a free trade agreement.
Ardakanian also participated in the 24th Saint Petersburg International Economic Conference held on June 2-5.
Held since 1997, the forum has become a global platform for members of the business community to meet and discuss key economic issues facing Russia and emerging markets.
The Iranian minister also met with the Russian Energy Minister Nikolay Shulginov on the sidelines of the forum to discuss bilateral cooperation and joint investments, as well as the situation in the global energy market.
Lukoil Ready for Cooperation
In related news, Russia's Lukoil has announced it would be happy to return to talks on its Iranian oil projects, which were at an advanced stage, once US sanctions on Iran are lifted, the company’s managing director, Vagit Alekperov, said.
Lukoil was in talks with Iran to develop the Ab Teymour and Mansouri oilfields, but had to put plans on hold in late 2018 after the US pulled out of the Iranian nuclear deal and reimposed sanctions on the country's oil industry.
"We were in an advanced stage and have almost all documents on the Mansouri field ready," Alekperov told reporters on the sidelines of the St. Petersburg economic forum, as quoted by Prime news agency.
"If restrictions are lifted, we would we happy to resume negotiations and implementation of this project," he added.
Mansouri Oilfield in the southern Khuzestan province has an estimated 3.1 billion barrels of oil in place.
Separately, Russian Deputy Prime Minister Alexander Novak estimated that Iran could raise its oil output by about 1.5 million barrels per day, which "could start entering the global market as early as this summer, given the nuclear deal is struck soon".
US, Iranian and European negotiators are expected to meet next week for the sixth round of indirect talks in Vienna, Austria, as they seek to reach a deal on sanctions relief.
