Iran signed a $6.5 billion deal with the Russian energy giant Gazprom. This was announced by the Iranian Deputy Foreign Minister for Economic Diplomacy, Mehdi Safari. This is a partial realization at this stage of the memorandum of understanding with Gazprom, for a total of 40 billion dollars. “The permit is under negotiation and is expected to be signed next month,” Safari noted.
During the visit of Russian President Vladimir Putin to Tehran in July for participation in the Astana Forum, which is designed to find a solution to the civil war in Syria, Gazprom signed a memorandum of understanding totaling $40 billion with the National Iranian Oil Company (NIOC), according to which the Russians will assist in the development of the North Fars gas reservoir in the province Bushehr, the gas reservoir on Kish Island in the Persian Gulf, as well as six oil fields. On the contrary, the Russians will contribute their experience to the establishment of a gas liquefaction facility and the upgrading of the Iranian gas export pipeline.
Cooperation in the field of energy between Russia and Iran in general and joint work in the natural gas industry in particular is very significant, because these are the two countries with the largest gas reserves in the world. Russia has reserves in its territory to the extent of 47.8 TCM (trillion cubic meters), which is 24.3% of all the world’s reserves, while Iran’s territory has reserves to the extent of 34 TCM, which is 17.3% of the world’s gas reserves.
Earlier this month, the Iranian oil minister, Javad Aoji, visited Moscow – and discussed with senior officials of the Russian energy industry the possibility of oil and gas exchange agreements between the countries. “The scope of the exchanges is expected to be finalized in the coming days,” Deputy Minister Safari said. The upgrading of energy relations between Moscow and Tehran is carried out simultaneously with the supply of Iranian-made aircraft to Russia, for its continued invasion of Ukraine. The Russian-Iranian natural gas exchange agreement joins an existing tripartite gas exchange agreement between Iran and Turkmenistan and Azerbaijan. Only last June, Oil Minister Aoji signed with his counterparts from Turkmenistan and Azerbaijan an agreement to double the volume of natural gas between them, after since November of last year – the three countries exchanged 1.5-2 BCM (billion cubic meters) of natural gas between them.
Another gas agreement, between Oman and Iran
In the meantime, Oman recently made headlines in Israel as a country that blocks the possibility of Israeli passenger planes passing through its airspace – after Saudi Arabia actually did so. And now, it turns out that the countries have agreed on renewing an ambitious project to lay a natural gas pipeline between them.
In fact, it is a renewal of the natural gas supply project between Iran and Oman, which was signed in 2013. At that time, there was talk of supplying natural gas worth 60 billion dollars over 25 years. “Russia intends to invest in the project,” Deputy Minister Safari said, “they will also assist in the construction of a pipeline inside Pakistan, which will enable the supply of Iranian gas.”