Europe Aims to Secure Gas Imports from Iran

The Chief Executive of the National Iranian Gas Company (NIGC), Majid Chegeni, has revealed that Iran's gas exports have experienced a notable increase, with Europe expressing interest in procuring gas from Iran. Chegeni shared this insight on the eve of Government Week (August 24-30), highlighting the impressive growth in Iran's natural gas and liquefied petroleum gas (LPG) production during the current Iranian calendar year, which began on March 21, 2023. Notably, natural gas production has surged by 16%, while LPG production has seen a substantial 22% boost.

Referring to data from the OPEC Annual Statistical Bulletin (ASB), Chegeni provided additional details, explaining that Iran's exports of natural gas reached 18.43 billion cubic meters (bcm) in 2021 and 18.79 billion cubic meters (bcm) in 2022. This signifies an impressive growth of over 60% compared to the figures from 2020. It's important to note that these export gains have occurred despite the challenges Iran faced with gas supply imbalances during the winter of 2021. In fact, Iran not only fulfilled its contractual gas export commitments but also managed to increase its annual gas export volumes.

Addressing Europe's energy needs, Chegeni highlighted that European nations have been in discussions with Iran regarding the prospect of importing gas through Turkey. While these talks are ongoing, concrete agreements have yet to materialize. Moreover, Chegeni indicated that negotiations concerning the extension of Iran's gas export contract to Iraq are in the final stages of completion.

Turkey has also expressed interest in extending its existing gas contract with Iran, indicating the significance of the energy partnership between the two nations. In addition to these developments, Iran has engaged in ongoing gas export discussions with Oman and is working to reinvigorate its gas export agreement with Pakistan. Furthermore, active trade discussions with Russia are taking place, underscoring Iran's efforts to diversify and strengthen its energy partnerships on the global stage.

One intriguing aspect of Iran's gas strategy is a swap arrangement with Turkmenistan. Chegeni noted that Iran's gas intake from Turkmenistan has surged from 4.5 million cubic meters per day (mcm/d) to an impressive 8 million cubic meters per day, a remarkable shift attributed to the resolution of Iran's debt to Turkmenistan in three installments.

In summary, Iran's gas exports have witnessed substantial growth, drawing attention from Europe, which is exploring the possibility of importing gas from Iran. This announcement coincides with the Government Week celebrations and underscores Iran's significant achievements in boosting both natural gas and LPG production. Despite challenges, Iran has not only fulfilled its contractual obligations but also managed to elevate its annual gas export volumes. The ongoing negotiations with European nations and neighboring countries, coupled with the interest from Turkey and Russia, underscore Iran's proactive stance in securing and expanding its energy partnerships.