Iran in Gas Transit Talks With EU Companies

EghtesadOnline: Supplying natural gas to Europe via a pipeline from Turkey is on the National Iranian Gas Company's agenda, the CEO said.

News ID: ۷۴۸۴۱۳

14 September 2019

"The infrastructure is in place and talks are underway with private companies in the EU," Hassan Montazer-Torbati was quoted as saying by ILNA. No details were available.

As soon as talks produce results, Greece will be among the first gas export destinations, he said.

Pipe laying work to connect South Pars Gasfield onshore refineries in Asalouyeh to the ninth Iran Gas Trunkline (IGAT-9) is completed. The pipeline can help augment gas export not only to Turkey but also to distant destinations, Financial Tribune reported.

There will be no limitation on supplying EU private firms with the eco-friendly fuel and they need to know that receiving gas through Turkey is the best option, Torbati said without providing details.

"The 56-inch-diameter IGAT-9 with a length of 1,863 km length starts from Asalouyeh, crosses Ahvaz, Dehgolan and stretches to Bazargan district in  northwestern province of West Azarbaijan through 17 compressor stations."

Work started in 2015 on the $3 billion project that is expected to be launched soon. The pipeline will carry 100 million cubic meters of natural gas per day to the northwestern regions bordering Turkey.

Iranian gas can also be sold to Georgia via Armenia or Azerbaijan, as both countries have the necessary infrastructure.

Energy experts say meeting domestic gas demand in the past two decades has been a NIGC priority, which is why its role in foreign markets has been marginal.

According to the NIGC chief, close to 600 mcm of gas is injected into IGAT every day, of which 50 mcm is exported to Iraq, Turkey and Armenia (in exchange for electricity). The bulk is used in households and industrial and power plants inside the country.

"Close to 36,000 kilometers of high-pressure gas pipes are now operating," he said, adding that the transmission and distribution pipelines stretch over 350,000 km.

IGAT is a series of nine large diameter pipelines built to supply gas from refineries in the south (Khuzestan and Bushehr provinces).