NIGEC Mulls Options for Exports to Europe

NIGEC Mulls Options for Exports to EuropeNIGEC Mulls Options for Exports to Europe

Proposals have been sent to Iran to lease gas pipelines to export natural gas from Iran to European markets, managing director of the National Iranian Gas Export Company said on Wednesday.

“Instead of laying new pipelines to export sour gas from South Pars Gas Field to Europe, which would be extremely costly and economically unviable, we can make use of existing pipelines,” Alireza Kameli, who also is a deputy oil minister, was quoted as saying by Mehr News Agency.

Referring to ways that can be used as alternatives to the proposals for constructing new pipelines, the official recalled that several pipelines have already been laid from Russia, the Middle East and Azerbaijan to Europe, including Shah Deniz Pipeline in the Azeri part of the Caspian Sea to Turkey, and Nord Stream 1, an offshore natural gas pipeline from Vyborg in the Russia to Greifswald in Germany.

According to the official, the new strategy can help NIGEC export gas to distant destinations using the shortest possible routes and thereby save substantial amounts in export costs.

Iran, which sits on one of the world's largest natural gas reserves, exports around 90% of its outbound gas to Turkey and the remainder to Armenia and Azerbaijan.