Iran and Romania have signed a memorandum of understanding, based on which Iran will export technical and engineering services to Romania’s gas sector.
The MoU is the first of its kind for Iran and enables the country to join exporters of services to Europe, IRNA reported.
Techno-engineering services are one of the most important sectors of the oil and gas industry. However, due to sanctions, many of the world's largest companies withdrew from the Iranian market in 2018 and this compelled Iran to promote domestic capabilities.
The reliance on the capacities of local engineers and manufacturers helped improve the indigenized know-how and led to the manufacture of various parts and equipment, especially in the gas sector.
And now the country is seeking to enter the European energy market and export its services in the field.
The deal was signed between Iran Gas Engineering and Development Company, a subsidiary of National Iranian Gas Company, and Gaz Vest, a Romanian gas company.
Based on the agreement, IGEDC would provide engineering services and construct gas transmission lines, pressure boosting facilities and storage tanks in Romania in coordination with Gaz Vest.
The MoU seeks to study joint investment opportunities and interaction in various fields such as feasibility of building refineries, power plants and gas pipelines.
The memorandum has been signed to exchange know-how and expertise of both sides in the joint fields of cooperation and create a working group of the representatives of Iranian and Romanian parties.
After developing Iran’s gas transmission and distribution networks, IGEDC is determined to expand its capabilities and communications beyond the country's borders.
Accordingly, for the first time, it will cooperate in the field of engineering services and construction of gas transmission lines, gas pressure boosting facilities and gas storage tanks in Romania.
Gaz Vest is a privately owned joint stock company active in gas fuel trade and distribution through pipes in different counties of Romania.
According to the company’s website, Romania still needs investments in building the gas distribution systems.
Great Gas Grid
Iran has a vast gas grid with thousands of kilometers of gas transmission lines, because of which local engineers manufacture most of the required equipment and implement gas supply projects.
More than 95% of Iran’s population are linked to the gas supply network, such that 36,000 villages are connected to the gas grid.
Expansion of the gas grid is still underway across the country. A project to install 1,700 km of gas transmission pipelines and build 200 MW of gas pressure facilities is underway and will be completed by the end of the current Iranian year (March 20, 2022).
Natural gas pipe-laying operations are underway nationwide to connect far-flung small towns to the national grid. The operations are being carried out in Kohgilouyeh-Boyerahmad, Khuzestan, Gilan, Hormozgan and Qom provinces.
Supplying gas to underprivileged areas is on the NIGC agenda and the gas network will cover more subscribers in faraway rural regions.
Programs are underway to link 6,000 more villages to the gas network within a year. Expansion of the national gas grid has been made possible because of the rise in gas production.
Domestic gas output has surpassed 1 billion cubic meters per day, a major part of which comes from the giant South Pars Gas Field in the Persian Gulf. The output is set to increase by 10% in the coming months.
According to reports, NIGC has invested over $17 billion in natural gas infrastructure since 2013.
