Gazprom Keen on Iran Gas Liquefaction Ventures

Gazprom Keen on Iran Gas Liquefaction Ventures Gazprom Keen on Iran Gas Liquefaction Ventures

Russian energy giant Gazprom has sent a note to Iranian authorities with a request to participate in gas liquefaction for exports.

If Gazprom acquires a stake in the Iranian gas sector, it would partially control Iranian gas streams and prevent that country’s competition with Russian gas in Europe, Russian news service RBTH reported on Thursday.

Currently the National Iran Oil Company is preparing the technical and economic justification for holding the tender. In February 2016 Russian media wrote that Iran had begun cooperation with Gazprom.

NIOC reported that five joint committees had been created in the areas of investment, repair jobs, servicing, storage and oil and gas processing.

Gazprom is the biggest gas supplier on the European market providing more than a quarter of Europe’s demand. According to the company, it delivered 158.6 billion cubic meters of gas to Europe in 2015.

Iran has not yet entered the European gas market, but it delivers between 9-10 billion cubic meters of gas to Turkey each year.

According to BP, Iran is thought to have one of the largest reserves of gas in the world —33 trillions of cubic meters of gas or about 17-18% of the world’s supply.

Since the early 2000s, Russia and Iran have been working on ambitious gas pipeline projects in Europe.

Iran was initially involved in the planning of the Nabucco oil pipeline, which was to provide gas to Europe via Turkey, but instead decided to focus on the Persian pipeline. This proposed project could provide up to 40 billion cubic meters per year to European customers.

The South Stream, a Gazprom oil pipeline project, was to go through the Black Sea. Construction began in 2012, but a variety of factors led to its cancellation in late 2014.