NIGC: Iran not rival to Russia in European gas market

EghtesadOnline: Deputy Minister of Petroleum and Managing Director of National Iranian Gas Company (NIGC) Hamid-Reza Araqi says Iran is not rival to Russia in European gas market.

News ID: ۷۳۷۵۱۹

16 October 2016

According to Ministry of Petroleum, Araqi said the Islamic Republic of Iran intends to access European market through LNG but in this connection, it has no plan to compete with or replace Russia.
Iran is to raise daily gas output to one billion cubic meters, being capable of exporting 30 billion cubic meters of gas a day to Europe. Of course, it plans to raise the exports through LNG.
Russia is now the biggest exporter of gas to the green continent and highest amount of European energy requirements are met through Russia. So, there are wide-scale discussions that Iran gas might replace that of Russia in Europe, reports IRNA.
To this end, Iran has stressed that though intending to win considerable share in European energy market, Iran is not after being a substitute for Russia in gas market of the continent.
Ministry of Petroleum quoted Araqi as saying that based on guidelines of the Supreme Leader of Islamic Revolution Ayatollah Seyed Ali Khamenei, there should be exports in the Economy of Resilience and we should play our role in the world trade.
Araqi said Iran has now a share of one percent in the world gas trade and it should rise to 10 percent. 'We are not going to replace Russia and we do not have any such goal. Iran has its own market and our neighbors need gas.'
Iran will in the long-run have engagement with many countries and it can access European market through LNG, said Araqi, adding that since world's hugest gas reserves are in Iran, the country has high capacity to meet gas requirements of its neighbors and such issues as price and the technical and political problems should be gradually solved.
He noted that Iran is the only country in the region which is capable of meeting neighbors' gas and on the other hand, they need the gas.
He stressed t hat gas production in Iran will rise to 1.260 billion cubic meters a day in the next four years from 600 million cubic meters a day now.
Iran's extractio of gas from South Pars reserves will be equal with that of Qatar next year and we can turn the gas into value-added, according to the expert.
He hoped for 60 million to 100 million cubic meters saving in household gas consumption in the winter season and the amount of gas will be turned into value-added.