Gas Delivery to Turkey May Rise by 6 mcm/d

Gas Delivery to Turkey May Rise by 6 mcm/dGas Delivery to Turkey May Rise by 6 mcm/d

National Iranian Gas Company can increase natural gas export to Turkey to 36 million cubic meters per day through the existing infrastructure, managing director of NIGC said.

"Iran' gas export to Turkey amounts to 30 mcm per day and the much-needed infrastructure is available to increase the export level by 6 mcm per day," Hamidreza Araqi was also quoted as saying by Shana.

"To develop the new enterprise, a new contract should be signed on the terms of the new version of Iran's oil contracts—known as Iran Petroleum Contracts or IPC."

The official noted that as soon as a new agreement is concluded between the two states, plans will be made to expand the infrastructure.

According to the official, Iran's natural gas export to Turkey reached 1.8 billion cubic meters since the beginning of the current Iranian year (started March 20), which marks an 11% rise compared with the corresponding period of last year.

On average, 21.5 million cubic meters of gas have been transferred to Turkey daily since March 20.

Pointing to NIGC's export level, he noted that 2.93 billion cubic meters of gas were exported between March 21 and August 2 in the current Iranian fiscal year. Nonetheless, the export level stood at 2.51 bcm in last year's corresponding period.

Asked about the rise in gas delivery to power plants, Araqi said, "NIGC has delivered 27.67 bcm of gas to power plants until August 2, yet the amount stood at 26.71 bcm in the corresponding period of last year."

Underscoring the rise in gas delivery to other key industries, including petrochemical complexes, the official said gas transfer to major industries has risen by 1 bcm to currently stand at 13.50 bcm.

On injecting gas into oil and gas reservoirs, he said 1.52 bcm and 5.37 bcm of gas were injected into Shourijeh and Sarajeh gas storage facilities and Aghajari Oilfield in the same period respectively.

  Gas Export Plans

According to NIGC's deputy for international affairs, Azizollah Ramezani, over the next five years, Iran will supply gas to its neighbors by pipeline.

By 2021, annual exports would reach 68-80 billion cubic meters. Of this amount, 50 bcm will be sold to neighbors and 30 bcm—in the best-case scenario–to the European Union.

"Presently, 10 out of the 15 neighboring countries have the capacity to import Iranian gas and export to India and China is on the agenda. Meanwhile, the prospects of exporting gas to Japan and South Korea are under review and should be possible after the completion of a liquefied natural gas production unit,” Ramezani said without elaboration.

Tehran has contracts with Armenia, Azerbaijan and Turkey to export gas, but the lion’s share of exports goes to Turkey. The combined amount agreed for exports to the three countries is 126 mcm/d. According to the plan, Iran’s daily gas output will reach 1.05 bcm/d in five years.