Iran will Export 2bcm Natural Gas to Europe via Turkey , while its revenue of Gas Exports will Surpass USD10 bn


Iran Exporting Gas to Europe via TurkeyJNN 18 May 2013 TEHRAN – Turkey will to transit 2 billion cubic meters of Iranian gas annually to Europe, While revenue from gas exports will surpass USD 10 billion per year the Mehr News Agency reported on Wednesday.

The two neighboring countries are close to finalize pricing terms and conditions.

National Iranian Gas Company Managing Director Javad Owji said on Monday Iran will “witness a change in the revenues of the country from crude oil to natural gas.”

He pointed to the country’s goal to triple gas shipments to some of its neighbors, saying, “By signing new deals with Turkey and Iraq, Iran will increase natural gas exports to about 100 million cubic meters by next year from a current 35 million.”

“We are currently in talks with Turkey to win the right for gas transit via this country [to Europe],” Owji said.

Iran sits on the world’s second-largest natural gas reserves after Russia.

Owji also said Iran would start pumping natural gas to neighboring Iraq in summer.

On April 19, IRNA quoted Owji as saying that Iran exported 8.4 billion cubic meters of natural gas, worth $3.5 billion, in the past Iranian calendar year.

He also said that the country imported 4.5 billion cubic meters of gas, worth $1.8 billion, last year.

Gas imports dropped by 50 percent year on year, he noted.

Earlier this month, Owji said that Iran plans to increase its natural gas exports as a way to diminish its reliance on crude sales.

Iran and Switzerland have already finalised a deal to export Iranian natural gas to the European country, the Iranian deputy oil minister said.

Iran will start exporting seven million cubic meters of gas to Iraq as of this summer, he explained.

Iran will eventually increase the volume up to 25 million cubic meters per day, Owji added. It will transfer the gas to the border via the 6th nationwide gas pipeline, he said.

Owji, who is also the managing director of the National Iranian Gas Company (NIGC), went on to say that Iraq will use the gas to produce electricity in two power plants.

Iran plans to start exporting gas to neighbouring states such as Pakistan and Iraq, as well as increasing its gas export volume to Turkey, he said.

Iran currently exports 10 billion cubic meters of gas per year to Turkey which equals 30 million cubic meters each day.

According to Owji, once Iran’s 6th nationwide gas pipeline comes on stream, the country can boost its gas exports volume to Turkey by up to 80 million cubic meters per day.

Iran plans to export gas to Europe through Turkey and also to send daily exports of four million barrels of oil products to Iraq.

Iran’s Deputy Oil Minister Javad Owji says the country’s revenue from natural gas exports is expected to surpass USD 10 billion per annum.

Owji said on Monday that Iran would increase its gas exports to nearly 100 mcm per day by the end of the current Iranian year (ending March 20, 2013).

It is anticipated that with the increase of the volume, revenue from gas exports will surpass USD 10 billion per year,” he said.

The agreement was reached during Iranian Oil Minister Rostam Qasemi’s last month visit to Baghdad.

Based on the agreement, Iran will export two to four million litres of oil products daily from the Bandar Abbas refinery to Iraq by sea.

Iran currently produces 550-600 million cubic meters of gas per day.

The Iranian Oil Minister Rostam Qasemi announced in January that the country plans to sign some new gas export contracts in the near future.

By the end of the Fifth Five-Year Economic ‎Development Plan ‎‎(March ‎‎2016), Iran’s gas production capacity will have reached one billion cubic meters per day, Qasemi said.‎

‎‏By the end of the plan, the country will also produce 5.6 million ‎barrels of oil per day, he added.

 

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